India to take warranted steps to stem rupee fall: Rajan

The government, Reserve Bank of India and the Securities and Exchange Board of India will take "warranted" action to stall a sharp fall in the rupee, the finance ministry's chief economic adviser Raghuram Rajan said on Tuesday.

He did not elaborate on what the potential steps could be.

Rajan, further said, the government was not contemplating more steps to curb gold import, and significant reduction was likely in June.

The finance ministry, he said, will accept Cabinet proposals to increase foreign investment in various sectors.

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Indian oil refining companies have agreed to spread their dollar purchases in the foreign exchange markets as much as possible to reduce pressures on the rupee, the chief economic advisor to the government, Raghuram Rajan, said on Tuesday.

Oil marketing companies are among the biggest dollar purchasers in the currency market.

The rupee has been hitting record lows since Monday largely due to the global dollar strength.