Published On : Fri, Jun 24th, 2016

India well-prepared to deal with short, medium-term consequences: Jaitley

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Finance Minister Arun Jaitley’s first statement since Brexit as the Sensex plunged and the Rupee slides.

“We are well prepared to deal with short and medium-term consequences of Brexit:,” the finance minister said.

Earlier, MoS finance Jayant Sinha said, “There will be adjustment in currencies across the globe, but India still remains a haven of stability in a troubled world. We have made contingency plans he says. As long as the adjustment process is orderly, we will give the market leeway,” he said.

The rupee took a sharp plunge of 91.67 paise against the UK Pound to crash below the 68-level today as Britain’s vote for leaving the European Union played havoc in global markets, but RBI intervention to infuse liquidity helped the local currency recoup some early losses.

The rupee was trading down by 58 paise at 67.83 against the American currency in late morning deals. Overseas, China’s yuan fell to its weakest level against dollar in more than five years after Britain voted to leave the European Union, threatening the existence of the entire bloc and its single currency.

The British pound slumped more than 7 per cent against the dollar as turmoil came to the world markets. As the US dollar strengthened, oil prices reversed gains from overnight. Brent crude oil was last down 1.5 per cent at USD 50.16 a barrel. Sustained bouts of dollar demand from importers amid weakness in other Asian currencies also weighed on the rupee, forex dealers said.

The Indian unit opened sharply lower by 63 paise at 67.88 against yesterday’s closing level of 67.25 at the Interbank Foreign Exchange (Forex) market.