Mumbai: The rupee plunges to record low of Rs 55.19 per dollar in afternoon trade.
Traders cite strong dollar demand from oil firms and custodian banks adding to the rupee's downside.
The next key level to watch out for the USD/INR is 55.25, say traders, as they expect exporters to sell dollars at those levels, offering some resistance for the pair.
In defending rupee, RBI again falls short
Among traders the RBI's latest measures to target arbitrage and speculation is seen as akin to bringing a knife to a gunfight.
The Reserve Bank of India announced new currency measures on Monday, including stipulating that net overnight open position limit for the rupee should not include positions taken in the currency futures and options segment.
The announcement had the same effect as its previous actions, which is to say not much. On Tuesday the rupee hit its latest record low against the dollar.
