Rupee breaches 53-mark vs $, may fall to 55

Mumbai: The rupee on Wednesday breached a major resistance level, falling below the 53-mark against the dollar for the first time this year in intra-day trade. The plunge led forex dealers to believe that the currency is now headed toward 55 levels against the dollar. 

    With the trade deficit worsening due to lower-than-expected exports and foreign investors continuing to sell, there does not appear to be any support for the rupee in sight. The local currency has been the second worst performer in April vis-à-vis the US dollar. 

    Although the rupee firmed up to 52.55 earlier in the day, it soon slipped to 53.03 following a sell-off in the equity market and with the dollar gaining overseas. TNN