New Delhi:
Prime Minister Manmohan Singh on Friday told Parliament that the rupee fall was a matter of concern to his government, but growth was expected to pick up after a good monsoon.
"There are concerns and justifiably so on how rupee fall will impact economy, the movement of the rupee recently is a matter of concern to the government," he said in the Lok Sabha.
"The rupee has been especially hit because of large current account deficit and other investment factors. We intend to act to reduce current account deficit."
But he said despite the shock of the rupee fall, the government would not address the crisis through capital control.
After the PM's statement, senior BJP leaders LK Advani, Sushma Swaraj and Rajnath Singh will meet President Pranab Mukherjee to discuss their concerns on the economy.
The Congress-led government has been under fire to tackle an economy growing at its slowest pace in a decade, the widening current account deficit, and stabilize finances - a tough task ahead of general elections due by May.
The opposition had repeatedly forced disruptions as the rupee touched an alarming 68.50 to the dollar on Wednesday.
The rupee is the worst-performing major emerging market currency since May. It declined to a record low of 68.85 per dollar on Wednesday, posting its biggest single-day percentage fall in 18 years.
"There are concerns and justifiably so on how rupee fall will impact economy, the movement of the rupee recently is a matter of concern to the government," he said in the Lok Sabha.
"The rupee has been especially hit because of large current account deficit and other investment factors. We intend to act to reduce current account deficit."
But he said despite the shock of the rupee fall, the government would not address the crisis through capital control.
After the PM's statement, senior BJP leaders LK Advani, Sushma Swaraj and Rajnath Singh will meet President Pranab Mukherjee to discuss their concerns on the economy.
The Congress-led government has been under fire to tackle an economy growing at its slowest pace in a decade, the widening current account deficit, and stabilize finances - a tough task ahead of general elections due by May.
The opposition had repeatedly forced disruptions as the rupee touched an alarming 68.50 to the dollar on Wednesday.
The rupee is the worst-performing major emerging market currency since May. It declined to a record low of 68.85 per dollar on Wednesday, posting its biggest single-day percentage fall in 18 years.
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