Rupee hits life-time low per dollar

The rupee fell below the key psychological level of 55.05 to hit a new record low on Monday, setting up the prospect of further falls unless the central bank takes measures or intervenes more aggressively, traders said.

The rupee has now hit four consecutive record lows in as many sessions, at a time of intense turmoil over the euro zone, but traders saw no major signs of intervention from the Reserve Bank of India either on Friday or on Monday.

Despite the absence, traders are bracing for new measures from the RBI. The central bank has largely failed to prevent the rupee’s falls this month despite selling dollars and taking steps to attract inflows via deposits and exporters’ foreign currency holdings.