Prime Minister Manmohan Singh today reviewed the sharp decline in rupee value and its impact on the economy with RBI Governor D Subbarao and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Chairman of Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan was also present in the meeting. Rangarajan told media that they had discussions on what

actions can be taken to arrest rupee fall. He said, the overall situation of the economy was also discussed. Attributing the rupee depreciation to mismatch between

the current account deficit (CAD) and capital flows in the country, Rangarajan said, in the short-term the RBI should intervene to curb speculation as market over-reacts to the

situation. He said, efforts should made to reduce the CAD and should be pro-active in increasing the capital flows in the medium-term.

Mr Rangarajan had favoured direct sale of dollars to oil marketing companies (OMCs) to ease pressure on the rupee.
The oil firms buy dollars in large quantities to import crude from the international market. India's crude oil import bill was 155.6 billion US dollar in 2011-12.