Continuing its weak run, the rupee lost 32 paise in early trade today to touch a new four-and-a-half month low of 53.735 against the US dollar.
The domestic unit was trading at 53.7250 in the evening session.
Dealers attribute this to increased demand for the US dollar from importers.
Nervousness about the country’s worsening trade deficit and bleak sentiments about India’s investment and growth prospects have taken a heavy toll on the rupee over the past few months.
After the revival in the first two months of the calendar, the currency has lost almost 9 per cent since February end. If the weakness continues, the rupee may dip past its all-time low seen in December 2011.
Heavy intervention by the RBI had helped the rupee stem losses late last calendar.
There are worries that given the tight forex reserve position, the central bank’s ability or inclination to again intervene in a big way this time around may be limited.