The rupee continued its downward spiral on Monday and breached the record low of the 55 mark against the American dollar, according to reports.

Finance minister Pranab Mukherjee on Sunday had said the steep fall in the rupee was a matter of great concern and the centre was trying  to resolve the situation.

At the forex market, the domestic currency has been falling against the US dollar over the past few days.

On Friday, in early trade, the rupee threatened to breach the 55-level as it slumped to 54.91 against the American currency -- the fresh all-time low it hit in the third straight session as copious fund outflows continued amid Eurozone worries.

Dealers said strong dollar demand from importers, mainly oil refiners, on expectation of further strengthening of the dollar, caused the rupee's fall.

However, the Reserve Bank had stepped in and stemmed the rupee's slide. (PTI)