Indian rupee hits record low against US dollar for second day

The Indian rupee hit an all-time low for the second day against the US dollar as slow domestic growth and concerns of the eurozone debt is sparking worry that the the country could experience a financial crisis.

The rupee dropped 35 paise to 53.29 against the US dollar in early trading on Tuesday after the currency plummeted 81 paise the day before, the AFP reported.

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The India’s currency has been the worst-performing out of top 10 most-trade currencies in Asia this year is experiencing one of the highest inflation rates among major global economies. The country’s central bank said it will act to prevent such steep drops. 

 "The global [financial] mess is taking its toll in India, and they have been reflected in the numbers,” independent financial analyst Chetan Sharma told Al Jazeera. "No reprieve really for India from here on, but I would say this is going to extend for a while. It is going to plateau, not necessarily steeply deep from here," he said.

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Government officials have acknowledged the financial woes brought on by the global economic crisis.

“"The sharply deteriorating global economic environment has had a dampening effect on India," India’s finance ministry said in a statement.