"The depreciation of the rupee has been a matter of concern," Singh said while blaming the global factors such as tension from Syria and Federal Reserve's ending of monetary supply, which have caused "general weakness in the market."
"What triggered sharp and sudden depreciation of rupee was markets' reaction to certain unexpected external developments," the PM said adding, "The rupee is also getting hit due to high current account deficit."
He said the exchange rate is also a matter of concern along the weakening of the exports due to the fall in demand from one iron ore.
"Forex market has the notorious history of overshooting...unfortunately this is happening not only to rupee but currencies too," the PM said.
He said the rupee's tumble was a part of needed adjustments due to country's large current account deficits, and would have a positive impact on export competitiveness in the coming months.
Stating the government's plan to recover the sagging economy, Singh said,"We have taken measures to reduce our current account deficit."
"Our short term objective is to finance our current account deficit," he said.
He said there is a need to restrict the gold consumption and to economise the use of the petroleum products.
"We need to to reduce our appetite for gold," he said.
"We need to economise the use of petroleum products," he said adding that there is also need to reduce oil consumption.
However, he made it clear that there is no question of revising the economic policies.
"I would like to ensure the House and the world at large that the government is not contemplating capital control measures," he said.
He is hopeful that the economic condition will recover in the second half of this fiscal year.
"Growth will pick up in the second half of the fiscal year," he said.
He said the government will ensure to control the fiscal deficit to 4.8 percent.
He said the government will take steps to increase exports and reduce imports.
Singh on Thursday promised to make a statement in the Parliament but said he need some time to gather his thoughts and prepare for the same.
"I respect the concern expressed by members of this House over the fall in rupee," the PM said in Parliament on Thursday.
"I cannot deny that the country is faced with a difficult situation...I don't deny there are some domestic factors," he added.
After his statement, senior Bharatiya Janata Party (BJP) leaders LK Advani, Sushma Swaraj and Rajnath Singh are expected to meet president Pranab Mukherjee to express concerns over the economy,
After a historic fall, the Indian rupee opened stronger at 67.20 per dollar on Thursday recovering in early trade with both the BSE Sensex and Nifty gaining points.
Reports said the Reserve Bank of India (RBI) gave a fillip to the Indian currency by its decision to provide dollars to oil companies directly by opening a forex swap window.
Rupee had closed at a record low of 68.80 against the dollar in the last session while it went up to 66.85 per dollar shortly after the open.
The rupee slumped to a record low to the dollar on a continuing recession of confidence in the economy, posting its biggest single day fall in 18 years on Wednesday.
RBI earlier said that on the basis of assessment of current market conditions, it has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies (IOC, HPCL and BPCL).
--IBNS (Posted on 30-08-2013)