Rupee hits record low of 56.52 against US dollar

The rupee opened lower on Thursday at 56.50 and fell further to hit a record low of 56.52, continuing its downward momentum against the US dollar. It had ended at a record closing low of 56.23/24 per dollar.

The Indian currency has fallen for the third successive session, as oil importers ramped up demand for the greenback ahead of the end of the month, while global risk assets were hit by worries about Spain. Risk aversion deepened over continued euro zone worries, setting up expectations about potential intervention from the Reserve Bank of India.

Though global cues are providing the trigger, traders said the rupee was also being weighed down by deep concerns about India's fiscal and economic challenges, and doubts about slowing policy reforms.