MUMBAI: India's rupee hit a record low against the dollar on Wednesday, dragged down by escalating fears over the eurozone debt crisis and weak domestic indicators, traders said.
The Indian unit was trading at 54.31 rupees to the dollar in early afternoon, breaching its previous intraday lifetime low of 54.30 struck on December 15.
"Global uncertainty is in the driver's seat," said Priyanka Kishore, forex strategist at Standard Chartered Bank. "There is a tangible risk of the rupee moving towards 55 rupee to the dollar levels," she told AFP.
The Indian currency has slid more than 10 percent since March.
While Europe's debt crisis has weighed on the unit, it has also been hit by India's widening trade and current account deficits, slowing foreign fund inflows and pressure from oil importers, who exchange rupees for dollars when they buy crude.
Energy-scarce India imports four-fifths of its crude oil needs.
Shares in Mumbai were down nearly two percent in early afternoon trade, tracking a regional trend as investors across across Asia dump risk-sensitive assets on worries about the political upheaval in Greece.
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