Reuters Market Eye - The rupee extends fall to 54.79/80 versus its previous close of 54.4850/4950 on the back of all round dollar demand from importers particularly oil.
Traders say absence of dollar inflows also aiding the pair.
Domestic shares trading down 0.4 percent a day ahead of the Reserve Bank of India's monetary policy review where it is widely expected to leave key rates unchanged.
Traders however expect exporters to step in to sell dollars around 54.80 levels and limit further gains.
