Rupee falls below 56 against dollar again
30 May 2012
The rupee, which on Tuesday breached a firmer trend, continued to spiral downwards, hitting a low of 56.20 to the dollar, recovering marginally to tradeg at 56.08 at noon today.
The Indian unit opened lower at 56 against the US dollar at the interbank foreign exchange market, compared to its previous day's close of 55.57 a dollar.
The rupee, which fell below the psychologically important level for the second time in two weeks, this time breaching 56 against a dollar Wednesday, is expected to test another low against the greenback amidst continued dollar demand from foreign funds and importers.
The rupee had tested new lows last week when it came to 56.38 before suspected RBI intervention pulled it back.
The US currency was also firmer against the euro, which again added to rupee's woes.
Meanwhile, the dollar index that tracks the movement of the greenback against a basket of major currencies is currently moving sideways just below the resistance at 82.5. In the near term, however, there is a strong likelihood of the index breaking out to 88.7.
