Rupee drops sharply; breaches 55 levels

The rupee dropped sharply in the interbank forex market trading at 55.21 to the dollar, a drop of 36 paise over Thursday's levels.

Banks were buying dollars on behalf of clients, while there was fresh demand for the dollar from oil importers. Weak sentiments across global stock markets also weighed on the rupee. There were fresh concerns over the fiscal cliff in the US, which saw stock indices dropping sharply, which hurt sentiments for the rupee.

The rupee is likely to continue to be under pressure, should worries over the fiscal cliff in the US continue.

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