New Delhi, Feb. 4 -- The Rupee's depreciation against the US dollar will pose a risk to inflation but at the same time will make the exports competitive, Finance Secretary Tuhin Kanta Pandey said Tuesday.

"The Rupee is in a free-flow system. Both the government and RBI are monitoring the situation. The falling rupee will also add to export competitiveness," he said, speaking at a post-budget event organized by industry body ASSOCHAM.

In the same breath, Pandey said that RBI will need to take a call on the level of the rupee.

"Depreciation will pose a risk to inflation, but falling rupee will also add to export competitiveness, RBI will need to take a call on the level."

The Indian rupee has been steeply depreciating for the past few w...