India's currency has taken a beating. Currently, the Rupee is at its lowest low of 62 against the Dollar. Moreover, the Sensex crashed more than 700 points, creating chaos. This has prompted Prime Minister Manmohan Singh to call on a high level meeting to address the worrisome turn of events.
The Prime Minister's Office was forced to call on the meeting as Nifty also fell over 200 points, the worst in two years. Top Finance Ministry officials will take part in the meeting. It is a matter of great concern that the Indian economy shows no sign of picking up, despite the PM assuring of improvement.
Earlier this week, the RBI has also slammed restrictions on the amount of Forex outflow to give the Ruppee a little leaverage. Finance Minister P Chidambaram told the media that the RBI circular on overseas direct investments should not be overinterpreted as a capital control measure on corporates.
He added that the measures are temporary. However, the move looks like a desperate measure to control further decline. Both overseas investments and studies have taken the brunt of the bad news. Solutions from the top brains in the country are the need of the hour.
(AW: Sruthi)