The Indian rupee has closed at its lowest level against the US dollar at 60.73 on Wednesday on indications that the Reserve Bank of India is not likely to take significant steps to boost the currency's value.

Indian banks are increasing the demand for the US dollar believing that the RBI will continue to sell the American currency. The RBI has been selling dollar to control the fall but dealers said that the falling below the psychological point of Rs. 60 is a major development in the foreign exchange market.

Banks are looking to control losses as the rupee, which is facing pressure due to increasing demand for dollars by corporates, oil firms and selling of Indian securities by foreign portfolio managers, fell to close at 60.73, which is new low against the US currency. Many believe that the central bank might improve trading limits on banks in order to curb speculation in the country. Dealers have said that the limits for banks may provide short-term relief tot eh currency.

Some believe that the factors including 2014 general elections might restrict the authorities from adopting quicker policy reforms and this might allow the rupee to slide to as low as 63 against the US dollar.