Rupee sheds 31 paise; falls despite positive equities

The rupee had dropped to 55.72 to the dollar in trade earlier, however, it recovered following lower than expected inflation data.

Today's sharp rally in equities did not help the rupee. Dealers say that crude oil prices, which are trading at three months high, is likely to put pressure on the rupee. They believe that foreign fund flows has also been declining, though Foreign Funds have not yet turned net sellers in equities.

The rupee is expected to move in a range and a drop in global equity markets could see the rupee drop further.

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