Indian rupee falls to 56/dollar, focus on intervention

MUMBAI: The Indian rupee fell to as low as 56 per dollar, near the session low of 56.04 in the previous day, as global risk assets remained under pressure and a day after the central bank disappointed domestic markets by keeping monetary policy unchanged.

Traders say the rupee is vulnerable to fall to a record low of 56.52 to the dollar hit on May 31 should the global risk environment deteriorate, setting up the prospect the Reserve Bank of India could intervene in spot markets.

At 9:30 a.m., the partially convertible rupee was at 55.9650/97 per dollar, weaker than its previous close of 55.9050/9150.