Finance Minister P Chidambaram has attributed domestic and international factors to the devaluation of the rupee against the dollar. He said the government has taken several steps to strengthen the Indian currency. Responding to supplementaries during Question Hour in the Rajya Sabha today, Mr Chidambaram said, one of the domestic factors is that the country allowed the Fiscal Deficit to be bridged and also allowed Current Account Deficit to swell because of certain decisions of the government.
The Minister said, the currencies of all emerging economies have come under pressure. He said once the investment cycle picks up, the government is sure that it will have a positive impact on the country’s economy, and in particular, the Current Account Deficit.