New Delhi, Nov 19 (IANS): Even as the rupee fell to a 32-month low against the dollar, pushing up the cost of imports, Finance Minister Pranab Mukherjee Saturday said the central bank was monitoring the situation and would act at the appropriate time.

"The RBI is keeping an eye on it (depreciation of rupee). They are watching the situation at the appropriate level," Mukherjee told reporters on the sidelines of the Vatsalya Mela 2011 here.

The rupee slumped to Rs.51.30 against the US dollar Friday, the lowest in 32 months, due to increased demand for greenback from importers, fall in stock markets and continued concerns over inflationary pressure.

But the finance minister did not speculate on when the Reserve Bank of India (RBI) would intervene in the market by releasing dollars.

"I am not guessing anything and I am not finding what is comfortable level. I am depending on the advice of the RBI," said Mukherjee when asked about what rate would be a comfortable rate of exchange.

Selling pressure in Indian equities markets has also led to the southward move in the value of the currency. A depreciating rupee will for one make oil imports costlier, adding to the under-recoveries of already strained oil marketing companies.