Mumbai, May 30 (IANS): The Indian rupee slipped below the psychologically important level of 56 against a dollar Wednesday, for the first time in almost a week, and is moving closer to the record low due to increased demands for American currency from importers and weakness in euro.
The rupee weakened for the third consecutive day. The Indian currency opened at 56 against a dollar at the Interbank Foreign Exchange market as compared to the previous day's close at 55.67.
The rupee hit a low of 56.20 in the intra-day. The Indian currency hit a record low of 56.40 against a dollar last week.
Increased demand for the American currency from importers, especially oil refiners, to meet the month-end payment obligations, is putting pressure on the Indian currency, market watchers said.
Weakness in euro against dollar and negative cues from stock markets also added to the pressure on the Indian currency, they added.