The rupee declined 42 paise to 54.85 against the dollar in the first session due to weaker domestic equity markets and persistent growth concerns. The Indian unit had closed at 54.43 on Wednesday. At 2.35 p.m., it was trading at 54.79 per dollar. The domestic unit opened weaker at 54.50 at the Interbank Foreign Exchange market on account of capital outflows by foreign investors. The BSE benchmark Sensex was trading down by 220.5 points or 1.17 per cent at 18,581. “Growing concerns of widening current account deficit and political uncertainty weighed on the investor sentiments,� dealers said. Further increased demand from importers for the US currency and a weaker euro added to the pressure on the rupee.

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