Rupee trimmed its early losses but was still quoted lower by 83 paise, at 59 rupees, 53 paise per dollar after hitting a record 60-level on strong demand for the American currency from banks and importers amidst sharp fall in equity market. Persistent capital outflows from foreign funds also affected the market sentiment.The rupee resumed lower at 59 rupees, 50 paise per dollar against the last closing level of 58 rupees, 70 paise per dollar at Interbank Foreign Exchange Forex Market.Chief Economic Advisor Raghuram Rajan today said that the government is ready to take steps to reduce volatility of the rupee. Addressing a press conference in New Delhi today, Mr Rajan said, the government is closely watching the rupee situation and hoped it will stablize soon. He made it clear that rupee is not in shambles and there is no need to be pessimistic.Mr Rajan said that the Finance Ministry and SEBI are watching the markets. He said, the Finance Ministry is also in touch with the Reserve Bank of India over the rupee fall. The Chief Economic Advisor noted that depreciation of rupee is in line with the currencies of other developing markets. Planning Commission Deputy Chairman Dr Montek Singh Ahluwalia said that depreciation of Rupee is a temporary phenomenon. He said in volatile situations when currencies of many other countries are depreciating, the rupee cannot remain unaffected. Dr Ahluwalia said that the exchange rate is determined by the market and the Reserve Bank of India will intervene only when there is too much speculation in the market.