India needs to be vigilant to check rupee weakness: PM economic panel member

India needs to be extremely vigilant to check weakness in the rupee and the task was to minimise volatility and avoid contagion to other macro policies, a member of the prime minister’s economic advisory panel said on Friday.

“The present challenge can be effectively dealt with,” said Rathin Roy, in a blog, ahead of Prime Minister Narendra Modi’s meeting on Saturday to consider steps to address weak rupee and rising fuel prices.

Despite strong economic growth, the rupee has weakened more than 11 percent to become Asia’s worst performing currency this year, hit by higher oil prices and an emerging markets sell-off, widening India’s current account deficit and tipping its balance of payments into the red.