PM's economic panel member says India needs to be vigilant to check rupee weakness

A member of the prime minister's economic advisory panel said on Friday that 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,

"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, reported news agency Reuters.

Despite the strong economic growth, the rupee has weakened more than 11 per cent 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, the report added.

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(With Reuters inputs)