India is not planning to impose any capital controls to check the rupee's slide,a senior government source with direct knowledge of the matter said on Monday. Over the weekend,Subir Gokarn,a deputy governor at the Reserve Bank of India,had said the central bank would use all available tools including strategic capital controls to stem a fall in the rupee if the currency's downward spiral accelerates, the text of his speech posted on the bank's website showed. It has been widely reported that New Delhi was considering restrictions to check forex outflows. It is totally wrong,the source,who declined to be named,said. The source declined to comment further. The partially convertible rupee is the worst performing currency in Asia this year,having shed about 13 percent so far in 2011. The rupee is under pressure as foreign investors are paring their exposure to Asia's third-largest economy amid global uncertainty and mounting worries over the domestic economy.
