Rupee slipped to 56 level, RBI cautions

The depreciating Indian currency Rupee today breeched another psychological level of 56 as against a dollar and made another historic record of all time low on Wednesday, creating concern among government and country's Master Bank - Reserve Bank of India (RBI).

However, RBI and government are still looking reluctance in intervene in falling down the Indian currency.

Rupee continuously fell down in the sixth consecutive days on the continuous global demand of American currency.

In Indian Forex market, the rupee opened weaker at 55.66 against a dollar Wednesday against the previous day's close of 55.40, and hit a low of 56 in the Wednesday afternoon session.

The Indian currency has hit new intra-day low for the sixth consecutive session.

Finance Minister Pranab Mukherjee on Tuesday said that the government was taking steps to stem the rupee's slide.

Earlier on Tuesday, he said, "The government is taking a series of steps. However, managing rupee is market- related...There is a lot of volatility.

Speaking on the intervention of RBI, Pranab said, "As and when RBI will consider necessary they will intervene. It depends on the market forces and market forces are uncertain."

--With IANS Inputs--