Rupee hits 55.80; drops 15 paise

The Indian rupee continued to weaken today on fresh demad for dollars, dropping 15 paise, to trade at 55.80 to the dollar at 9.55 am IST.

The currency is now headed for the 56 levels, unless the Reserve Bank of India decides to intrevene. After a steady trend witnessed in the last few weeks, the rupee is showing signs of breaking down and going below the 56 levels.

Bulk of the dollar demand comes from oil importers, which exerts pressure on the Indian rupee dragging it lower. Over the past few trading sessions crude oil has surged making it more costlier for oil marketing companies and hence more demand for the dollar.

Crude oil is unlikely to dip in the near term adding to pressure on the Indian currency.

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