May 21 (Reuters) - The Indian rupee dropped further on Monday to hit a new record low at 55 per dollar, testing a key psychological level, as the euro retreated from the day's highs, while dollar demand from domestic oil firms and corporates also weighed.
At 4:26 p.m. (1056 GMT), the partially convertible rupee was at 54.96/97 per dollar. Moments earlier the currency had hit an all time low of 55, which marked a fall of more than 1 percent from Friday's close of 54.42/44.
Traders said they had not spotted the central bank intervening in the market despite the sharp falls. (Reporting by Swati Bhat; Editing by Rafael Nam)
