The Indian rupee dropped marginally by 5 paise in late morning trade, as equities remained subdued, following a sharp rally in the last two days.
The rupee was trading at 54.67 to the dollar at 11.20 AM IST. The Indian currency has remained stable in the last few days.
Forex dealers believe that the Indian rupee looks more weaker and any sell-off in equities could spark a downward spiral in the rupee. Foreign fund inflows have continue to support the funding of the current account deficit, which has reached worrisome proportions in the last few months.
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