Rupee drops below 53; sheds 28 paise

The rupee today slid below the 53 mark, as demand for dollar from oil importers weighed on the currency. The rupee was trading at 53.09 to the dollar, a drop of 28 paise over Friday''s close.

Weak sentiments in the equity markets also saw some buying in the dollar. However, bulk of the dollar demand has come in from from oil importers.

In the last one week, the rupee has lost some of its momentum following the government's reform measures initiated. The government had cleared FDI in multi-brand retail and also introduced FDI in the pension sector, apart from increasing the FDI cap in insurance.

This saw a smart rally in the rupee as also the Indian markets. Going forward the government would have to take the reforms process ahead to ensure that the rupee does not depreciate.

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