NEW DELHI: The rupee was at 52.77/78 versus the dollar, clinging to around three and half month lows on continued doubts regarding India's economic fundamentals and possible speculative dollar buying. Volumes in the cross stayed thin, creating volatility, with no signs yet of any intervention from the Reserve Bank of India. "The rupee has been falling continuously vis-a-vis the dollar since the last couple of months. The USD/INR spot rate rose from a low of 48.61 to test a high of 52.87 today," said Vinit Pagaria, VP - Investment Strategies, Microsec Capital Ltd. The immediate supply is likely to come at around the 52.95 levels, he further said. If the 53 level is breached on the upside, the dollar is likely to move higher towards 53.50 against the rupee, Pagaria added. "Any short-term correction in the trend is likely to take USD/INR lower up to 51.75. The 51.25-51.75 range is likely to act as a base for the currency in the short term," Pagaria said. Since the last few weeks, the rupee has been continuously weakening against the dollar. Yesterday's loss in the rupee was the biggest seen during the last month. The losses were mainly on the back of increasing concerns about capital inflows and the global crisis. "There are fears in the markets about a possible intervention by the central bank but it may not happen before the 54 levels," India Forex said in a report. The GDP of the US expanded 2.5 percent in the first quarter and the dollar is expected to further gain against the euro in this quarter as a result of the French election increasing concerns about the stability in the region. According to the report by India Forex, the rupee maintains an overall weakness and it expects a one-three month view of a further weakness with certain dips of 50-100 paisa in between. "We expect a strong base of 50 to hold on for a three-month horizon with an upside target of 53-53.50 against the greenback," the report added.

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