Sources in the Finance Ministry have said that the key factor behind the volatility in the Indian rupee is due financial developments taking place in the United States and in other parts of the world.
Asked what is responsible for the Indian rupee dropping to a historic low of 62 to the dollar today, they said: "It is a result of something happening in the United States and worldwide."
"The employment data in the U.S. shows betterment, and consumer prices were two per cent higher in July. This indicates that there is a chance of a recovery in the U.S. That's why the market has reacted, and there is a softening of the rupee," they added.
"We are not aiming for any level of the rupee. We don't want to fix any cut off rate for the rupee. Volatility in rupee is the main concern. The American economic scenario is improving, more jobs are being created, therefore, higher dollar inflows to the U.S., impacting currencies in other countries," the finance ministry sources said.
Earlier, the rupee dropped to a historic low of 62.00 per dollar in late morning trade on Friday.
The rupee surpassed the previous all-time low of 61.80 hit just last week and traded nearly 1 per cent lower from Wednesday's close of 61.43.
The partially convertible rupee was trading at 61.87/89 per dollar at 10.26 a.m., after hitting a record low of 62.03.