The rupee floundered yet again on Monday after a two-day break, plunging 66 paise to 72.51 against the dollar as the government's confidence building measures announced over the weekend to curb the currency volatility fell short of expectations.
The government is likely to announce a list of non-essential items for higher import curbs later this week as part of the measures to check the widening current account deficit and stem the fall in the rupee.
Analysts are sceptical of the measures announced by the Narendra Modi-government on Friday to check the slide in the rupee and rein in the current account deficit (CAD) and they fear the currency could again find itself exposed to the vagaries of the world markets after a two-day rally that saw the rupee gain 85 paise against the dollar.
The flare-up in the prices of petrol and diesel has raised the demand for bringing the fuels under the goods and services tax to provide relief to consumers. However, analysts said the prices are unlikely to come down as a result of this measure.