NEW DELHI: In a fresh blow to the rupee, the Indian currency hit a record low of 55 versus the US dollar on Monday. The rupee tested a key psychological level, as the euro retreated from the day's highs, while dollar demand from domestic oil firms and corporates also weighed. At 4:26 p.m. (1056 GMT), the partially convertible rupee was at 54.96/97 per dollar. Moments earlier the currency had hit an all time low of 55, which marked a fall of more than 1 per cent from Friday's close of 54.42/44. Traders said they had not spotted the central bank intervening in the market despite the sharp falls. Dollar demand from corporates and oil firms also hurt the Indian currency. Traders are closely watching for any intervention by the Reserve Bank of India. On account of the declining US bond yields, India Forex Advisors sees the dollar index above the 81 levels and in the hope of some support from the Indian government. India Forex Advisors sees the rupee in the 53-55.50 range for the next one month. The Reserve Bank of India had said last week that it would act only when there could be some impact. "We want to be sure that when we take any action, there is some scope for impact," Subir Gokarn, deputy governor at the Reserve Bank of India, said in Kolkata. "We also have to keep in mind that every option has some pros and cons. And we don't want to be doing things that will end up being somewhat costly or destabilising at some points." Corporate India has been clamouring for aggressive intervention by the central bank, which is hesitant to do so since the decline could be more due to global factors, with almost all currencies losing value to the US dollar. Economists and traders have been suggesting that the government route payments for oil imports through forex reserves to cushion the market impact. Oil companies need an average of $500 million a day.

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