The rupee commenced lower at 54.85 a dollar from its previous close of 54.70 at the Interbank Foreign Exchange market on Friday and immediately touched a high of 54.83 tracking the initial rise in domestic stock market.
However, it later turned weak and fell to a low of 55.20 on a strong dollar in overseas market amid investors winding up positions in global equities, said traders.
Coupled with a surge in dollar demand and sudden sell-off in Indian stocks, the rupee remained under pressure to finally close at 55.16 -- a fall of 46 paise or 0.84 per cent.
As global stock markets took a plunge on risk aversion, investors bet on the US currency, driving up the Dollar Index by 0.29
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