Many factors behind the depreciation of Rupees:Mukherjee

Finance Minister Pranab Mukherjee has said that Reserve Bank of India is taking all measured for the depreciation of Rupees. He said that there is many reason domestic and global for the slide in the value of the rupee against the dollar.

Mukherjee said that 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.

Europe used to be an important destination for exports, but demand there is uncertain, he added. Apart from these, global financial recovery as being "poor and fragile" even as oil prices rise.

It is noted that 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.

(With inputs from ANI)