Weak Indian rupee - issues and challenges

The Indian rupee crashed to a new life time low which has the potential to leave a lasting scar on the economy and corporate who are already bruised by the slumping output, declining consumer demand and high interest rates. Oil Company, Corporate and FII are creating heavy demand for dollar in the market which marked to 53.72. As long as currency like euro & pound are weak against the dollar the rupee too will remain weak. It is sure that if the situation continues it will affect the Indian economy. Te rupee come under pressure as FII cut their position in the domestic equity market and converted the sales proceeds into dollars for repatriation to their home countries. India has been weighed down by the twin deficit trade and fiscal.