ET:Rupee drops below 54 on dollar selling by custodian banks
The rupee broke below 54 to trade at 53.98/99 versus its previous close of 54.43/44 as dollar selling by some custodian banks hurt.
Traders say foreign funds likely bought domestic shares following Obama's victory at the polls, leading to dollar sales in the forex market. Shares closed up half a percent.
The dollar fell broadly after US President Barack Obama's re-election, which was seen ensuring Federal Reserve quantitative easing will be in place.
Traders expect the rupee to start moving lower and test/break 53.20 levels in a couple of weeks barring any major event hurting sentiment for risk assets.
