Rupee hits one-year low of 57 against dollar

The rupee today touched the key psychological level of 57 to the dollar in early trade on Thursday, approaching a record low hit nearly a year earlier as fears of an end to the US Federal Reserve's monetary stimulus sent the dollar higher and hit local shares.

India will do everything to minimise volatility in the foreign exchange market, said the Reserve Bank of India Deputy Governor K.C. Chakrabarty, who was speaking on the sidelines of a banking event.

Increase of import duty on gold by the government by a third to 8 percent failed to support the rupee. The world's biggest buyer of bullion seeks to halt a surge in gold demand that threatens to widen a record current account deficit yet further.