Rupee opens at all-time low of 58.30/USD

Indian rupee has touched a record low of 58.30 per dollar in opening trade Tuesday due to heavy dollar buying, as against previous day's closing of 58.15 per dollar.

NS Venkatesh of IDBI Bank told CNBC-TV18 that the high current account deficit (CAD) will continue put pressure on the rupee.

He could not determine whether the Reserve Bank of India (RBI) would intervene to stabilise the currency.

Rajeev Malik of CLSA said ironically, India had further opened up debt investment to FIIs just when global factors made that inflow into EMs less attractive. "The volatility and the swings in risk-driven foreign capital compromise rupee stability."

According to him, the rupee will eventually weaken to cross the 60/USD mark in a sustained manner. "Admittedly, this is playing out sooner than we expected."