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In the morning trade, the rupee collapsed to a lifetime low of 72.91 against the dollar, amid surging crude oil prices and unabated foreign fund outflows.
“Government and RBI will do everything to ensure that rupee does not slide to unreasonable levels. Today’s correction seems to reflect that realisation,” Economic Affairs Secretary Subhash Chandra Garg tweeted.
He said there was “no fundamental rationale” for the rupee to depreciate to levels seen till Tuesday. “It reflected overreaction of market operators,” Garg said.
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On Tuesday, after scaling a historic low of 72.74, the local unit, finally settled day at 72.69, showing a loss of 24 paise, or 0.33 per cent.