Rupee falls to a 3-week low of 54.86 against the dollar
18 Dec 2012
The rupee hit a three-week low of 54.86 against the US dollar as the Indian unit continued its downslide for a fifth day today.
The rupee opened higher at 54.74 a dollar against the previous close of 54.85 to a dollar. It breached the 55-level mark and touched 55.05 in intra-day trade. However, a strong euro helped the rupee recover some ground towards the close of trading.
The dollar index fell to a two-month low today, with the US currency dipping against the euro after signs of progress in negotiations over the US fiscal deficit lifted market sentiment.
The rupee closed at 54.85/86 per dollar - its lowest since 29 November.
Traders said the rupee was hammered by heavy dollar demand from oil and defence firms, which offset inflows into the domestic stock markets.
Exporter dollars were also hard to come as they refused to sell dollars at current levels on expectations of further fall in rupee value.
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