"The rupee is down momentarily, it will stabilise soon," the official added.
The rupee fell to more-than three months low of 63.15 in early trade today. However, it recovered later on dollar selling by banks to settle six paise higher at 62.85 against the US currency.
The equity markets have tanked more than 700 points while the rupee weakened nearly 1 per cent over the last two days.
According to the official, the decline in stock market was due to the impact of "the stimulus given to the Chinese economy and also because of Chinese monetary policy easing".
In order to boost its economy, Chinese central bank eased the monetary policy on Sunday by cutting interest rates by 1 per cent, the steepest reduction since 2008.