I don't deny domestic factors are to blame for economic crisis, the PM said in Rajya Sabha today
Prime Minister Manmohan Singh, on Thursday, informed the Lok Sabha, as he did the Rajya Sabha the same morning that he will make a statement on the economic crisis brought about by the rupee fall in both Houses of Parliament on Friday.
"I respect the concern expressed by members of this House over the fall in the rupee," the Prime Minister said.
In brief remarks to the Rajya Sabha, of which he is a member, Dr Singh had earlier said, "I cannot deny that the country is faced with a difficult situation...I don't deny there are some domestic factors." He then promised a full statement on Friday.
The Congress-led government hoped that assurance would help the lower house function and take up the Land Acquisition Bill which was later passed. The Bill is the second populist legislation to be cleared by Lok Sabha which had passed the Food Security Bill earlier this week.
The Opposition had forced repeated adjournments in Lok Sabha on Thursday morning, demanding that the PM explain why the rupee had been allowed to slide to record lows. The currency had touched an alarming 68.50 to the dollar on Wednesday.
It rebounded on Thursday after the Reserve Bank of India's move to provide dollars directly to oil companies. But analysts warned that this too would prove a temporary measure.
The Prime Minister, on Thursday, said that international factors arising out of a change in the US' monetary stance had hit the rupee and cautioned that the rising tensions in Syria could have negative implications for oil prices. India imports nearly 80 percent of its crude oil needs.
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.