The domestic currency, however, managed to log its first gain in 10 weeks, breaking the trend of nine consecutive weekly losses, the worst streak since the Lehman crisis in 2008. Last Friday, rupee had closed at 55.54, after touching a record low of 56.52 against dollar a day earlier.
At the Interbank Foreign Exchange (Forex) market, rupee resumed lower at 55.18 against yesterday's close of 54.94.
A smart rise in dollar overseas pushed the rupee to a day's low of 55.67.
While the rupee attempted to stage a late recovery by hitting 55.14 as local stocks saw fund inflows of Rs 200 crore (Rs 2 billion) on Friday, the move was in vain.
It finally concluded at 55.42, a fall of 48 paise or 0.87 per cent.
Forex dealers said with US Fed chief Ben Bernanke stopping short of mentioning a fresh stimulus and Fitch downgrading Spain's long-term credit rating, investors flocked to the US dollar, considered a safe-haven
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