Finance Minister P Chidambaram has said that the appreciation of the rupee is a technical phenomenon. Speaking at Coimbatore in Tamil Nadu, Chidambaram said the rupee's rise is part of a business cycle.

Chidambaram said, “The rupee value is appreciating. The American economy is in recession and the foreign banks are facing bankruptcy. This is all a part of the business cycle.”

Meanwhile Commerce and Industry Minister Kamal Nath has said that state governments will have to take the lead in controlling inflation. Speaking exclusively to Network 18, the Minister also said that in case the states don't act, the centre won't hesitate in using it's legislative powers to deal with the situation.