Rupee had stayed "very strong" for quite a number of years and therefore some decline in its value was "expected", Rangarajan told reporters here.
The rupee this year has declined nearly 10 per cent against the dollar. In today's trade, the Indian currency tumbled by 34 paise to nearly 28-month low levels of Rs 49.82 against the US dollar.
"The rupee has fallen but you must also note that it happened at a time when currencies in many other emerging economies have also fallen," Rangarajan added.
When asked about the impact of the depreciation of rupee value, he said, "We have to wait and see for some more time before coming to a conclusion where it will settle down."