The rupee extended loss to 53.85/86 versus its previous close of 53.6650/6750, tracking a further decline in the domestic share market and on the back of strong dollar demand from the oil firms. The traders say there are no dollar inflows in a holiday-shortened week, with banks preferring to cover short positions ahead of the long weekend. Forex and debt markets are closed on Friday for a local holiday. The demand from oil firms is also stronger due to the approaching month-end, when firms need to pay for their imports. However, traders expect strong resistance around 53.90 levels, limiting further sharp gains.

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