The Indian rupee dropped further by 23 paise to close below 55-level at nearly 4-1/2-month low of 55.11 against the Greenback on sustained dollar demand from importers and some banks amid weak dollar overseas.
Weakness in local equities also weighed on the rupee while continued capital inflows failed to restrict the rupee fall. FIIs pumped in Rs 867.93 crore last Friday, as per provisional data with stock exchanges.
At the Interbank Foreign Exchange (Forex), market, the local unit commenced lower at 55.06 a dollar from previous weekend's close of 54.88.
However, it later recovered to a high of 54.80 on dollar selling by exporters and initial firm domestic equities.
It later turned negative and fell to a low of 55.20 before settling at 55.11, showing a fall of 23 paise or 0.41 per cent. Last Friday it had declined by 11 paise or 0.20 per cent. It had closed at 55.23 on January 7, 2013.
The Indian benchmark S&P
Sensex closed down by over 62 points or 0.31 per cent.
The dollar index was down by 0.25 pct against a basket of six major global currencies.
Special 
