RBI taking steps to arrest rupee fall against dollar: Mukherjee

Kolkata, May 27 (ANI): Finance Minister Pranab Mukherjee on Sunday attributed the slide in the value of the rupee against the dollar to various domestic and global factors.

Mukherjee told media here that the Reserve Bank of India (RBI) is taking steps to arrest the rupee's depreciation.

"There are a lot of reasons for this (depreciation). There is demand and supply in the market. In the US, there is surplus investment. It used to be a safe haven," he said.

He added: "Europe used to be an important destination for exports, but demand there is uncertain."

He also described global financial recovery as being "poor and fragile" even as oil prices rise.

The RBI recently indicated that it might sell dollars directly to oil companies to ease pressure on the currency.

It has already taken steps to curb speculation in the forex market and increase the inflow of foreign currency.

Since early March, rupee has lost about 13 per cent against the dollar driven by a combination of deteriorating global risk sentiment and weak domestic fundamentals.

The rupee had hit an all-time high of 56.38 on Thursday.

It closed at 55.37 to the dollar on Friday. (ANI)