Rupee breaches 56 again; S&P comment leaves a mark

Business

oi-Sneha

By Sneha B K

Published: Tuesday, June 12, 2012, 13:47 [IST]

The partially convertible Indian rupee slipped Rs 0.30 paise against dollar today on Interbank Foreign Exchange. Rupee felt the pressure after reports of a S&P downgrade threat surfaced, which is likely to make overseas borrowing costly.

The Indian rupee opened at 55.80 per dollar versus 55.73 yesterday. Investors are cautious against making any move as major policy decisions are yet to come like Greece election and Federal Reserve meet.

Sustained dollar demand from banks and corporates on the back of strong dollar in the overseas market mainly affected the rupee value, a forex dealer said. At 12.00 PM IST, the rupee was seen trading at 56.05 down Rs 0.31.

In New York, the dollar ended higher against the euro yesterday on lingering worries about Greece's debt crisis and the lack of clarity on the USD 125 billion bailout plan for Spain's banks, reports PTI.

Meanwhile, the BSE benchmark index Sensex was trading marginally up by 21 points to 16,690 and Nifty up by 6 points to 5,060.

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