India's rupee hit a new lifetime low against the dollar Tuesday as the government said authorities would take "action as warranted" to stem the fall. The rupee has been hit by speculation that the US Federal Reserve will cut back on asset purchases which have fuelled flows into emerging markets and as well as by growing concern about India's economic weakness. "A large part of the rupee's fall is due to dollar strength," the finance ministry's chief economic adviser Raghuram Rajan told reporters in New Delhi, adding that there was "no sense of panic".

The yen rose in Tuesday afternoon Asian trade as the Bank of Japan (BoJ) delayed any expansion of its huge stimulus scheme following a two-day policy meeting. The dollar was changing hands at 98.11 yen in Tokyo after diving into the 97-yen range soon after the news that the BoJ held its ground. Further easing measures would have likely weakened the yen. The greenback was trading at 98.87 yen in New York late Monday as markets mulled whether the BoJ would extend the time-frame of its stimulus and increase the frequency of bond purchases, among other possible measures.

India's rupee slid to a new lifetime low against the dollar on Tuesday, tracking weakness in most other Asian currencies, as dealers continued to buy the greenback following robust US jobs data. Growing concerns over slackening domestic growth and weak stock markets in India have also hurt the rupee, which began hitting lifetime lows on Monday for the first time in a year.

The yen fell sharply against other major currencies Monday ahead of the end of a two-day meeting of the Bank of Japan. The dollar rose to 98.87 yen near 2200 GMT, up from 97.54 yen late Friday. The euro jumped to 131.05 yen from 129.01. The euro bought $1.3254, up from $1.3216 in the prior session. The yen has been perhaps the world's most dynamic currency in recent months in light of the Japanese government's aggressive efforts to spur growth and defeat deflation.