Rupee breaches 56/dollar, despite RBI action

The rupee slumped to a new record low of 56 to the dollar on Wednesday weighed down by global risk aversion, with the Reserve Bank of India's intervention earlier in the day seen as too mild to prevent further falls.

At 12:40 p.m., the partially convertible rupee was at 55.98/99 per dollar, after hitting a new record low at 56, sharply below its Tuesday's close of 55.39/40.

The euro stayed pinned near recent four-month lows while domestic stocks were down more than half a percent.