The Indian rupee slid to a record low of 52.77 on Monday as signs of a sharp slowdown in Asia's third-largest economy prompted investors to buy dollars.
Traders said possible buying by local oil importers, the biggest buyers of dollars in the local forex market, also pressured the currency.
The local currency is the worst performing unit against the dollar among major Asian peers this year and investors continue to stay bearish on the rupee, a Reuters poll last week showed.
In fact, India may face its worst financial crisis in decades if it fails to stem a slide in the rupee, leaving the central bank with a difficult choice over how to make best use of its limited reserves to maintain the confidence of foreign investors.
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