The depreciating rupee today hit all time low at Rs.54.46 as against one US dollar and gave a warning signal to India. However Indian Finance Minister Pranab Mukherjee has appealed for austerity as the situation will improve if eurozone crisis would slow down.
He also said that India's growth rate would be intact and there is no need to press the 'panic' button. "I am going to put in some austerity measures. It is important to send a right signal," he said.
He also added that government was taking measures to revive growth and attract overseas investments.
He blamed eurozone crisis for slow down and sharp drop in stock markets. 'Crisis in the eurozone, especially in Greece, was causing uncertainty in India and other developing countries as well,' said Pranab.
However, he also added that he was not trying to pass on the blame to someone else.
"Don't think that I am trying to pass on the buck elsewhere. The buck stops at me, I agree. I am owning the responsibility... but we shall have to keep in mind that this is a difficult world," he said.
Speaking on tanking of stock market he said that continued sell-off by the foreign institutional investors led to almost two percent slump in the country's benchmark indices.
The benchmark Sensex of the Bombay Stock Exchange slumped below 16,000-point mark Wednesday. The Sensex closed 1.83 percent down at 16,030.09 points.
The wide-based Nifty of the National Stock Exchange also closed 1.71 percent down at 4,858.25 points.
The Indian rupee took a severe beating and dipped to a record low of 54.46 to a US dollar.
Traders on the other hand believe that RBI has become failed to arrest the devaluing of rupee which has surpassed its previous level of Rs.54.32 on December 15.
They have appealed to Finance Minister and RBI governor to curb it immediately to avoid panic situation.
--With IANS Inputs--
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