The rupee is touching record lows every week now and India's defence of its currency is failing even as the nation pays a high toll in the form of bond yields at five year highs. On Monday the rupee had its single biggest percentage trading fall against the dollar since September, 2011, around 2 percent. That brings the rupee’s total decline against the dollar this year to 13 percent, making it the third worst performing of the 36 most actively traded currencies against the dollar after the South African rand and the Brazilian real. India is looking at serious problems and the central bank’s efforts to stem the drop by draining monetary supply is driving up domestic interest rates. Outflows from the rupee have been most apparent in the bond market with selling by non-domestic investors. The 14-day relative strength index print on the dollar/Indian rupee is 84.845, far into overbought teritoty but there is nothing to stop it going higher or the rupee to weaken further. The dollar/rupee could climb to 65 from the current 63 and change.