|Mumbai gold dealer|
From The Economic Times
MUMBAI: A confluence of adverse domestic and global factors is threatening to push the Indian rupee to historic lows, making the import of crude oil and coal more expensive and aggravating the problems of an economy already battered by decade-low growth and poor investments.
The currency breached the psychological level of 57 to the US dollar, making importers nervous. But the government and the Reserve Bank of India (RBI), which have made gold imports difficult to shore up the currency, appeared to be unmoved.
"There is no cause for alarm on the Indian rupee, and capital flows are strong," said Finance Minister P Chidambaram. "I think the rupee will stabilise and find its correct level," he said.