Finance Minister Nirmala Sitharaman on Saturday said the rupee has "held back very well" against the US dollar when compared to other currencies.

Against the backdrop of the rupee dropping to a lifetime low against the greenback, Sitharaman said the Reserve Bank and the finance ministry are keeping a very close watch on the situation.

"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. We have held back very well," she told reporters here.