In its Global Economic Outlook, Fitch, however, flagged tightening of financial conditions, rising oil bill and weak bank balance sheets as headwinds to growth.

According to Gorman, the rupee's depreciation is not a reflection of poor economic management, rather an \"unfortunate consequence\" of external factors.

The forex reserves have been declining in the past few weeks as the Reserve Bank is selling the US dollar to contain rupee depreciation

The government's latest measures to support the rupee announced last week were particularly underwhelming for market participants who have since increased bearish positioning on the currency.

On Tuesday, the rupee closed at its all time low of 72.98, falling 47 paise against the US currency due to surging crude oil prices and escalating trade war worries. Earlier in the day, the Indian currency hit a historic low of 72.99 in late afternoon deals.

Continuing its intermittent fall against the US dollar, the Indian rupee dived to another all-time low of 72.98 on Tuesday. The currency has lost over 13 per cent in value against the greenback since the beginning of the year.

The drop in value of rupee and spike in international crude oil prices may force the government to curb imports of non-essential commodities including gold.

Despite steps such as withdrawing withholding tax on Masala bonds, allow some breathing space to foreign portfolio investors, and check non-essential imports and promote exports in order to arrest the decline in rupee, the local currency fell over 50 paise below the 72 level per dollar mark in trade today.

The government has made a slew of announcements -- including removal of limits on foreign portfolio investor (FPI) exposure to corporate bonds and curbs on import of non-essentials goods -- to check depreciation of rupee and ballooning current account deficit (CAD).

The aviation sector is facing headwinds as some airlines grapple to cut costs and others struggle to stay afloat.

High passenger traffic growth by itself may not be enough for airlines in India. They are also looking at international operations, cargo and ancillary services.

On Saturday, the government announced steps to check non-essential imports and promote exports in order to arrest the decline in rupee, check the widening current account deficit and relaxing norms for raising overseas borrowing.

This is the second consecutive week of major fall in the reserves which indicates that the central bank has been selling the greenback to fight the fall in rupee, which had crossed the 73-mark earlier this week.

While the Sensex rose 325 points to hit an intra day high of 37,738, the Nifty recovered 93 points to touch 11,380 level. Top gainers on the Sensex were Adani Ports (2.82%) , Sun Pharma (2.77%) and ITC  (2.59%).

Credit Suisse in a note said an overhang on Titan is potential regulatory action if rupee depreciation worsens. In 2013, govt had taken measures to curtail gold imports to support the currency.

Indian IT services companies could see improvement in margins by as much as 100 basis points in their second quarter results due to the depreciating rupee.

While several measures have been suggested to contain the rupee fall which has depreciated nearly 13% since the beginning of this year, you will be surprised to know that the Indian currency is not the only one to lose major ground due to geopolitical and fiscal factors.

The decision will cost the exchequer Rs 2,000 crore and will provide the people a relief of Rs 2.5 per litre on petrol and diesel.

Economic Affairs Secretary Subhash Chandra Garg said last week's rupee fall was on account of the belief that emerging markets with a current account deficit may face some pressures going forward, and the rupee was no exception

According to Kochi-based Federal Bank, there are signs of a spurt in remittances already, with the banks remittance handling go up to Rs 1,000 crore per week last fortnight, as against the usual average of Rs 700-800 crore.