The rupee has “held back very well” as compared to other currencies against the United States dollar, Union Finance Minister Nirmala Sitharaman said on Saturday, reported PTI.

“If any one currency which has held its own and did not get into fluctuation or volatility as much as other currencies, it is the Indian rupee,” Sitharaman told reporters in Pune during her visit to review centrally sponsored schemes. “We have held back very well.”

She said that the finance ministry and the Reserve Bank of India were keeping a close watch on the matter, ANI reported.

Sitharaman made the statement a day after the rupee depreciated to a record low of 81.23 against the US dollar.

This was the first time that it breached the 81-mark. The currency finished trading at an all-time closing low of 80.98 on Friday.

Foreign exchange traders credited the escalation of geopolitical risk in Ukraine and rate hikes by the United States Federal Reserve and the Bank of England behind the dwindling value of rupee.

On Wednesday, the US Federal Reserve raised its interest rate again by 75 basis points and warned of more hikes as it battles soaring prices, stoking fears of a recession.

On July 22, Reserve Bank of India governor Shaktikanta Das said that the central bank would continue to engage with the foreign exchange market to ensure that the rupee finds its level.

“I would like to reiterate that we have no particular level of the rupee in mind,” Das had said during an annual conference of Bank of Baroda in Mumbai. “But we would like to ensure its orderly evolution and we have zero tolerance for volatile and bumpy movements.”