India proposes new steps to stem rupee slide
NEW DELHI (AFP) - India on Wednesday stepped up its battle to halt the rupee's plunge, proposing to raise funds abroad through "quasi-sovereign" bond issues and curtail some imports to reduce its huge current account deficit.
Finance Minister P. Chidambaram made the announcements as the currency sank to 61.20 rupees (S$1.28) to the dollar - within a whisker of its lifetime low of 61.21, hit earlier in July.
"The balance sheets of some of our public-sector units are quite strong to raise funds abroad - these would be quasi-sovereign issues," Mr Chidambaram told reporters in New Delhi.
"Quasi-sovereign" means buyers of the issues would have the Indian government's guarantee against default.