New Delhi (CNN Business) India's currency resumed its headlong plunge on Friday, stoking concerns that the world's fastest-growing major economy could be heading for a slowdown.

The rupee crossed 74 rupees to the US dollar for the first time ever, after the country's central bank surprised markets by holding off on raising interest rates. The currency recovered slightly later in the day.

The Reserve Bank of India (RBI) decided against hiking rates for the third time this year despite expectations that it would act to tame inflation caused by rising oil prices and the crashing currency, which makes imports more expensive.

The Indian rupee has fallen around 15% against the surging dollar this year, making it one of the world's worst performing currencies

The Indian government has tried in vain to stop the slide. It recently made it easier for foreign investors to buy rupee bonds issued by Indian companies and raised tariffs on imported goods like washing machines and diamonds, measures designed to reduce the flow of money out of the country.

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