The Indian rupee fell below the psychological level of 55 to hit a new historic low on Monday, setting up the prospect of further falls unless the government or RBI take measures or intervene aggressively.
External and internal pressures play a major role in rupee fall including higher demand and limited supply, analysts told Khaleej Times.
The partially convertible unit hit its fourth consecutive daily all-time low of 55.05 per dollar during the session, before closing at 55.03/04, according to SBI data, well below its 54.42/44 close on Friday. Against the UAE dirham, the rupee also touched a record 14.94 level on Monday.