The rupee spiralled downhill to 52.50 to the dollar late last month, sparking new inflation concerns.
According to analysts, the rupee, which has fallen 14% since the start of this year, is said to be partly due to some investors leaving emerging markets.
“At this moment, the dynamics seem to be pretty much against all emerging market currencies and that’s not really helping the rupee,” economist Siddartha Sanyal told AFP news agency.
The previous rupee low was in March 2009.
India’s finance ministry said that the central bank, the Reserve Bank of India, cannot curb the rupee’s fall completely, owing to their ‘limited’ ability in controlling such situations.
But despite the fall, trade secretary Rahul Khullar encouraged investors not to “overreact.”
Finance Minister Pranab Mukherjee told the BBC that the weakening rupee reflects the uncertainty in the international markets.
