Continuing fall for the third day in a row, the rupee today again fell past the psychological level of Rs 56 against the US dollar in early trade on heavy demand for the American currency from importers amid concerns over euro zone worries.
Dealers said besides strong month-end demand from importers, particularly oil refiners, the euro's weakness against the American currency on persistent euro zone worries, kept pressure on the Indian currency.
“USD/INR made a definite move-up once the last technical retracement level of 56.05 was breached. However, today's upmove is in line with the euro's fall and I don't expect the RBI to come in at these levels,” said a senior trader with a private bank.
At 10:27 a.m., the partially convertible rupee was at 56.09/11 per dollar, weaker than its 55.67/68 close on Tuesday.
Traders cited strong dollar demand from oil importers looking to meet their commitments at the end of the month.
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