The Indian national currency has recorded its first ever annual fall this year since 2008 due to concerns of the Eurozone debt crisis and increased outflow of foreign funds.

The Indian rupee has become the worst performing currency in Asia this year, recording a low of 4.305 per dollar on December 15. According to the exchange data, foreign funds reduced holdings of Indian stocks by $380 million.

Duvvuri Subbarao has said that the economy might miss the target of 7.6 percent growth for the 12 months ending March 31. The Sovereign bonds declined for the third year as many believed that the government will boost its debt-sale plan from a record.

The rupee recorded a decline of 16.1 percent in 2011, according to data compiled by Bloomberg. Some are now expecting the currency to fall to the level of Rs 60 against the US dollar in the coming year.

The RBI has indicated that the interest rates will not be hiked anymore as there are signs that the high interest rates have affected economic growth in the country. The central bank had increased the rates more than a dozen times since March 2010 in order to control the high rate of inflation.

Comparatively, Brazil's real lost 11 percent to 1.8657 per dollar and the Russian ruble fell 5.3 percent to 32.1505. On the other hand, Chinese yuan appreciated 4.4 percent to 6.3110.