India unveils steps to boost rupee

India has announced a number of measures to prop up the rupee, which has been falling against the US dollar. The limit on foreign investment in government bonds has been increased, among other steps. The Indian currency, which has fallen almost 25% in the past year, dropped to 56.80 to the US dollar after the announcement. Analysts say the fall was down to disappointment over the lack of major reforms to boost growth. India's central bank also announced measures such as allowing sovereign wealth funds, endowment funds, pension funds and foreign central banks to invest in government bonds to boost the rupee. The prime minister's top economic advisor C Rangarajan said Monday's measures will have limited impact on the currency in the short term. "I think the correction will happen over time, because it will happen only when the capital flows come in. The avenues have been opened," he told a news channel.