The rupee tumbled to a new record low against the dollar, hitting the symbolic 65 per dollar level as Finance Minister P Chidambaram insisted there was no need to panic and economists urged the government to focus on reforms to boost confidence instead of quick-fix solutions.

"All emerging market economies appear to be affected by currency volatility--the Indian economy is challenged," Chidambaram said.

Chidambaram, however, insisted that the government was committed to bringing stability and had no intention to introduce capital controls. "There is no need for pessimism," he said. Read More