The rupee opened lower on Wednesday as renewed concerns about the euro zone battered riskier assets, setting up the prospect of continued intervention from the RBI.
Balanco, analysts with CLSA says the Indian currency could move to 56-58 versus the dollar if the 54 level does not hold.
High oil import bills will be weighed on rupee weakness, RBI needs to intervene on falling rupee, he further added.
All in Europe and the US markets amid political uncertainty in Greece had its affect on Asian market as well. Analysts said that investors were worried that political wrangling may delay the process of solving the EU's debt crisis.
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