Rupee breaches 56; hits lowest level since June 2012

Updated: Wednesday, May 29, 2013, 14:51 [IST]

he rupee has breached the 56 mark against the dollar with ease and was trading at 56.13 at 9.05 am, down 17 paise over Thursday's close.

This is the lowest level hit by the rupee since June 2012. The rupee has been losing ground against the dollar in the last two weeks on sustained demand for the dollar. With the fall in gold prices the demand for gold has risen pushing gold imports higher and the trade deficit and subsequently current account deficit higher. This has weighed on the rupee.

Dealers says that the rupee could continue to weaken, as there is unabated demand for the dollar. Also, the dollar has been gaining against other major currencies globally.

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