Following are some experts commenting after the rupee touched an all-time low of Rs 54.32
Sean Callow, Senior currency strategist, Westpac Banking Corporation, Sydney
"Unfortunately for the rupee, this is not a great environment to run a current account deficit and thus be reliant on capital inflows from foreign lenders. New highs on USD/INR mean fresh air to the top side.
"Net foreign purchases of Indian equities YTD $8.8 billion means lots of capital could be pulled from India if the mood doesn't improve. A rare positive is lower oil prices.
"Suspect only radical steps by RBI - or sudden action by foreign central banks and/or G20 - will stop a push through 55 and quite possible higher."
Deepak Kundu, Dealer FX and rates, ING Vysya, Mumbai
"I think the rupee is likely to touch 56 to the dollar by June-end. As of now, the only support can come from the Reserve Bank of India. There is no dollar supply in the market and exporters are not selling."
Indranil Pan, chief economist, Kotak Mahindra Bank, Mumbai
"The stress on Indian currency deriving out of the worries from the global conditions have increased significantly. The issue now focuses squarely on capital flows and if a heightened risk aversion globally would significantly lead to a drying up of the capital flows.
"Significant firming of the dollar is also adding to the rupee depreciation pressures. Attempts by the RBI to contain rupee depreciation is only likely to worsen rupee liquidity conditions. A difficult scenario presently for the policy makers."
Ashtosh Raina, Head of foreign currency trading, HDFC Bank, Mumbai
"The level of Rs 55 to a dollar is very much possible. The RBI can intervene strongly. But, for the rupee, given the global environment, and the dollar strength, RBI can contain the fall, but not control it."
Radhika Rao, economist, Forecast PTE, Singapore
"Given the one-sided bias in the markets, there was little that the central bank could unilaterally do, especially as EUR/USD is tumbling fast and stark losses in the stock markets."