The Indian national rupee has crossed the Rs. 54 mark against the US dollar continuing its fall against the currency.

The Indian Rupee fell 46 paise to a record low of Rs 54.17 per US dollar against the dollar in early trade today. There was demand for the American currency from banks and importers and weak performance by domestic stocks. The US dollar rose against the euro and other currencies due to the continuing euro zone debt crisis, according to the forex dealers.

The international trends along with a weak performance of domestic share market amid a slowdown of the domestic economy. They added that the increased demand for the US currency increased pressure on the rupee. The partially convertible Indian rupee had touched a record low of Rs. 53.71/72 per dollar in the previous session.

Finance Minister Pranab Mukherjee has also expressed concern over the declining value of factory output and rising subsidies. The central bank, the Reserve Bank of India (RBI) is expected to intervene if the rupee declines further.

The Mid-Year Analysis 2011-12, which is presented to the parliament said about the currency valuations that the various currencies around the world show some tendency to 'overshoot' periodically.

BSE benchmark Sensex has fallen 158.51 points, or 1 per cent, to 15,722.63 in opening trade today.