As the rupee depreciated to a new 32-month low against the US dollar, Finance Minister Pranab Mukherjee on Wednesday said, the Reserve Bank of India, RBI, is closely monitoring the situation. He added that RBI will intervene in the foreign exchange market as and when necessary.

Mr Mukherjee was talking to reporters on the sidelines of a function in New Delhi. AIR correspondent reports that the Indian rupee fell to a fresh 32-month low of 51.01 rupees against the US dollar during the day on Wednesday amid depreciation of the euro due to the deepening debt crisis in the euro-zone nations.