The Finance Ministry has termed the sharp fall in the value of the rupee as a reflection of irrational sentiment and said there is no need for panic.

Today, the Rupee slumped to at new all-time low of 68.80, down 256 paise from yesterday. This followed worries over foreign investors pulling out their investments and the widening Curren Account Deficit.

Economic Affairs Secretary Arvind Mayaram told reporters in New Delhi today that the rupee will correct itself. He said it is important to stay on the course. He said the Current Account deficit CAD will be much lower than expected. He said already seen some moderation in CAD.

Yesterday, Finance Minister P Chidambaram had said the rupee is undervalued and came out with a 10-point action plan to revive the economy. These included promoting exports, encouraging manufacturing, and reducing the fiscal deficit and CAD.