Rupee hits record low past 54/dollar

The rupee dropped to another record low of 54.30 against the dollar on Thursday as concerns heightened slowing domestic growth will spur further capital outflows.

The partially convertible rupee hit an all-time low of 54.30 per dollar in early trading, taking losses to about 4 percent this week.

The domestic currency had tumbled by 48 paise to close at a record low of Rs 53.71/72 per dollar in the previous session on strong demand for the American currency and strengthening of the dollar against its rivals overseas.

Forex dealers said in addition to continued demand for the American currency from importers and some banks, dollar gains against the euro and other currencies amid concerns over the eurozone debt crisis put pressure on the Indian rupee.

Any major intervention by the central bank is unlikely given India's relatively limited foreign exchange reserves.

India's wholesale prices rose 9.11 percent in November, leaving inflation stubbornly high and suggesting the central bank would hold rates steady at its review on Friday even as worries grow over the health of the economy. 
   
Economists expect the central bank to accelerate monetary easing in 2012 as economic conditions worsen. 
   
The euro nursed heavy losses in Asia on Thursday, having plumbed its lowest level in 11 months, as signs the European debt crisis could run sent investors fleeing risk assets for US Treasuries.