Indian rupee fall below 53 level mark against dollar on S&P threatening to downgrade Indian credit rating.
After breaching the 53 mark in early trade, the rupee closed lower for the fourth straight day as it dropped 33 paise to 53.05 compared to previous close of 52.72.
At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 52.95 a dollar but showed some strength to recover to log a high of 52.85.
However, it soon fell back on persistent dollar demand and weak domestic stocks to a low of 53.18. The rupee concluded at 53.05, showing a fall of 33 paise or 0.62 per cent.
Dealers said a firm dollar overseas put pressure on the rupee even as continued capital inflows failed to cap the rupee’s recent fall.
“IMF has already downgraded the growth outlook and S&P has issued a fresh warning on India’s credit rating. Over the near-term, we believe rupee could remain a play on the global factors and as a result, a range of 52.20-53.60 could unfold,†said Anindya Banerjee, Currency Analyst, Kotak Securities.
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