Rupee fall will not last very long: PM

Dismissing any comparison with the 1991 external debt crisis, Prime Minister Manmohan Singh today said the fall of rupee is a matter of concern but was confident it will not last very long.

He said the rupee depreciation was taking place against the backdrop of the global economic problems and the Euro zone debt crisis and expressed optimism that solutions will emerge at the G-20 Summit in Mexico next month.

"The sharp fall of rupee is a matter of concern. But I don't think we are anywhere near the 1991 situation. The fall of rupee is taking place against the backdrop of global economic problems and the Euro zone debt crisis.

"This is a phenomenon which is not going to last very long," he told reporters while returning after a three-day visit to Myanmar. After touching a record low of 56.38 to a dollar, the value of rupee has been fluctuating in the last few days.

Today it closed at 55.67. Since early March, the rupee has depreciated by over 10%. In 1991, India faced its worst external debt crisis and was forced to pledge gold abroad to redeem loans with the IMF.

The Prime Minister, who will be attending the G-20 Summit next month, said global economic problems and the Euro zone crisis will be solved. "In next month's G-20 meeting in Mexico hopefully some credible solution will emerge," he said. The Prime Minister said the prevailing economic situation was hurting emerging economies like India and South Africa.