In what could be seen as a repercussion of Food Security Bill passed by parliament on Monday, the Indian rupee touched a new low of 65.93 to the dollar on Tuesday, breaching the 65.56 record witnessed last week.
The Indian rupee that breached 65 to the dollar mark on Thursday created market panic with rumours floating that it would fall even further in the near future but latest reports suggested it would bounce back in a few months' time.
The Indian rupee has been continuously falling of late despite Reserve Bank of India's intervention, The currency is unlikely to recover soon with a report by Deutsche Bank predicting that it is could touch 70 against the US dollar in a month's time.
The rupee on Thursday breached 52 to the dollar, the highest in over five months, on hopes that an array of economic reforms taken up by the central government would boost the economic growth of the country.
The BSE Sensex posts its third consecutive daily gain on Monday after State Bank of India boosted the outlook of the stock market with its impressive earning last week. However, rupee hits a new record low at 55 per dollar, which could affect the stocks.
The BSE Sensex was up by 0.68 percent on Tuesday, its highest close in two weeks. Heavy Electricals (BHEL) gained after posting positive provisional earnings and lenders also expect the Reserve Bank of India (RBI) to cut rate this month.