Rupee weakens to 56.34 against dollar

The rupee slipped to further lows of 56.34 at 10 am local time on weak sentiment globally.

The local unit opened at 56.26 against the previous close of 56.12.

A host of reasons have contributed to the rupee’s fall this week. European debt crisis, slowing growth in US and China, uncertain monsoons and government’s policy inaction have added to rupee’s woes.

“If the government introduces policy reforms in multi-brand retail, aviation, insurance and pension, then the rupee might snap back to 51-52 levels,” Mr G. Chokkalingam, Chief Investment Officer, Centrum Wealth Management, said.

If there are no policy reforms, then the effect on the rupee will be disastrous, he added.