Expressing "great concern" over the sharp fall of the rupee, Finance Minister Pranab Mukherjee Sunday said the central government was trying to resolve the issue.

"It is a matter of great concern," Mukherjee told reporters in Kolkata when asked about the fall in rupee's value against the dollar.

He said the government was keeping a watch on the situation. "We are watching. The centre is not sitting idle. We are trying to resolve (the issue)," he said.

Blaming the falling rupee on the Eurozone crisis, Mukherjee said emerging markets such as Brazil were also experiencing a currency crisis.

The Indian currency has been falling steeply against the dollar over the past few days in the foreign exchange market and is currently trading at Rs.54.42 to the dollar.