Finance Minister Arun Jaitley has attributed the fall in rupee to global factors and said there is no need for panic or knee-jerk reactions.
He said the Reserve Bank of India is doing whatever is necessary to deal with the situation.
Replying to a media query in New Delhi on Wednesday, Mr. Jaitley said the dollar has strengthened against almost every other currency and added that the rupee has consistently either strengthened or remained in a range.
Elaborating his point on global factors affecting the rupee, the Finance Minister said India is a net buyer of crude oil and spike in prices affects the country.
He also said eventually the inherent strength of the Indian economy has to play a very important role and expressed confidence that fluctuation in the currency market will come down.