Rupee drops sharply by 55 paise; trades at 55.49

The rupee plunged sharply today by 55 paise to trade at 55.49 to the dollar, as sentiments were affected due to weak equity markets. Globally equity markets continued to drift into the red despite three central banks across the globe cutting rates.

Dealers expect the rupee to continue to drift lower on falling global markets. Today's fall was led by dollar demand from rupee importers. Dealers say that the Reserve Bank of India has not been intervening in the markets.

The central bank has made it clear that it would intervene to only curb volatility in the forex markets.

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