Falling rupee a concern, says Pranab

KOLKATA, May 21, 2012



Finance Minister Pranab Mukherjee today said the steep fall in the rupee was a matter of great concern and the Centre was trying to resolve the situation.



"It is a matter of great concern. We are watching the situation. The Centre is not (sitting) idle. We are trying to resolve (the issue)," Mr. Mukherjee told reporters here.



"This is due to the Eurozone crisis," he said.



Mr. Mukherjee added, "There is also currency crisis in emerging markets including Brazil."



At the forex market, the domestic currency has been falling against the U.S. dollar over the past few days.



On Friday, in early trade, the rupee threatened to breach the 55-level as it slumped to 54.91 against the American currency — the fresh all-time low it hit in the third straight session as copious fund outflows continued amid Eurozone worries.



Dealers said strong dollar demand from importers, mainly oil refiners, on expectation of further strengthening of the dollar, caused the rupee's fall.



However, the Reserve Bank had stepped in and stemmed the rupee's slide.
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