Rupee touches 66.07 against USD

With a further 2.5 percent drop the Indian Rupee has fallen its biggest percentage drop in one year. It touched 66.07 against the US dollar crossing the 66-mark against the dollar, for the first time in history, reports say.

The strain of weak local equities, dollar demand from importers and banks and a strong US currency abroad and capital outflows added burden to the rupee.

On Monday, the Lok Sabha (lower house of Parliament) passed a $20 billion Food Security Bill to provide cheap grain to the poor.

The drop is raising amongst analysts over the country's already bruised deficit situation.

Finance Minister Mr. P Chidambaram noted that the 'fiscal deficit will be contained at 4.8 per cent of GDP even post dishing out subsidies for the Food Security Bill', reports say.