Ruling out the rumours that Indian government is doing nothing to check the depreciation of Rupee, Finance Minister Pranab Mukherjee said, "Steep fall in the rupee is a great cause of concern and we are watching the situation not sitting idle." He blamed 'Eurozone crisis' for current depreciation. "I know that there are certain areas of grave concern, including the rupee. The way it is depreciating vis-a-vis the dollar is a matter of grave concern. He said, we are watching the situation, but it is closely linked with the uncertainty in the Eurozone. "All over the world there has been, particularly the emerging market economies, there has been a currency fluctuation. There has been Korea and certain countries also, I think Brazil, Mexico, there have also been currency fluctuations. It is a matter of concern," he added.

Mukherjee had earlier on Saturday said he was "watchful" of the economic situation. Despite repeated interventions over the past sessions and a rash of other measures targeting deposits and exporters, the Reserve Bank of India has so far been unable to prevent the falls in the domestic currency. The rupee fell to as low as 54.36 to the dollar, breaching its previous record low of 54.30 set in December. It was last trading at 54.335/35 compared to its 53.79 close on Tuesday. The rupee has fallen nearly 10 percent since its 2012 peak in February due to concerns about India's current account and fiscal deficits. Watch more on this story.