The rupee fell below the 53 per dollar mark for a second straight day to touch a four-month low on Thursday, as domestic refiners continued to buy the greenback amid high crude oil prices.

Rising trade and current account deficits besides dwindling FII inflows are also weighing on the partially-convertible Indian currency.

FII flows have turned weak as overseas investors have been put off by the Government's proposed new regulations on capital gains and Vodafone-like tax disputes.

The rupee ended at 53.41 per dollar after being as low as 53.4750 and as high as 52.12. It had opened at 52.1250 as against the previous close of 52.9550.

The rupee dropped below 53 for the first time since Jan. 5 after government data showed that exports fell in March - first drop since Sept. 2009.

According to certain media reports, the Reserve Bank of India (RBI) intervened in the currency market today as well. The central bank reportedly stepped in at around 53.45, according to reports.

The RBI had intervened on Wednesday also to check the rupee's depreciation after it dropped under the 53 per dollar mark.

The RBI steps in in the currency market to prevent sharp volatility and has a policy of not commenting on rupee movements. This was the ninth such RBI action in 2012, reports said.

The rupee - Asia's worst performing currency in 2011 - hit a record-low of 54.30 against the US dollar in mid-December. The Indian currency then recovered to 48.67 to the dollar in February before turning weaker again on a whole host of domestic problems.

The rupee has been under pressure lately amid concerns that foreign capital inflows will moderate given the slowdown in the Indian economy and worsening situation on the twin deficits - Budget and External account.

Last week Standard & Poor's cut the outlook on India's ratings, citing the downturn in the economy, deteriorating external account, high budget deficit and policy impasse.

But, Tom Byrne, a senior vice president of rating agency Moody's Investors Service, said on Wednesday that India has some leeway to get reforms back on track with its long-term growth prospects firm.

"There is no imminent funding crisis because of policy slippages," Byrne told reporters at the Asian Development Bank's (ADB) annual meeting in Manila.