As the rupee depreciated to a new 32-month low against the US dollar, Finance Minister Pranab Mukherjee on Wednesday said the Reserve Bank is monitoring the situation and will intervene in the forex market "as and when necessary".
His comments came a day after the apex bank said that it will intervene in the foreign exchange market only to arrest volatility.
"We intervene when there is a very strong movement in a particular direction or extreme volatility and the objective is to smooth that volatility and not fix a rate," RBI Deputy Governor Subir Gokarn had said on Tuesday.
The Indian rupee fell by 24 paise to a fresh 32-month low of Rs 50.91 against the US dollar in early trade today amid depreciation of the euro due to the deepening debt crisis in the euro-zone
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