New Delhi, May 16: Amid growing concern over the Greek crisis Indian currency Rupee touched new low of 54.66 against dollar on Wednesday. At the time of reporting rupee was trading at 54.40, down 0.61 from previous close.

As the economic fundamental of India is under question with rising fiscal and current account deficit and lack of decision making at the top, investors are shying away from the market. With fiscal deficit near 6% of GDP and current account in negative added by dearth of any strong policy measures to revamp growth, institutional investors withdrew heavily from market putting pressure on dollar counter.  

Rupee failed to stabilize, even after repeated currency intervention by the Reserve Bank of India. Going by experts point of view, it would be almost impossible for RBI to contain the fall in this kind of global scenario. 

Currency analysts are of opinion that rupee will cross the 55 mark or even march higher against dollar. 

The rupee, which has fallen nearly 10% since its 2012 peak in February, is already is worst performing currency against dollar in East Asia.  

With core inflation nearing 8% and food inflation in double digits, it would not be easier for the central bank as well as government to take any drastic measure to cut infuse fresh liquidity into the banking system or cut subsidy burden. 

However, one ray of hope for the government is the declining crude prices, which touched $110 a barrel. India, which imports 75% of its oil needs, is struggling to control the oil subsidy burden and all measures to pass the rise to customers failed.