MUMBAI—The Indian rupee fell to its lowest in nearly two weeks against the U.S. dollar Tuesday, past the key psychological level of 56 to the greenback, as risk mood across the region remained sour.
The dollar was at 56.04 rupees as of 0525 GMT, a level not seen since June 1 when it touched 56.27 rupees. The greenback was at 55.74 rupees late Monday in Asia. The pair traded in a band of 55.72 and 56.05 Tuesday.
Currencies and stocks in Asia fell as investors doubted whether Spain's weekend agreement to seek bailout funds for its troubled banking system will restore confidence in the Spanish economy.
Also, traders said some state-run Indian banks were spotted buying the greenback, likely for defense-related payments. Oil companies, too, likely bought dollars intermittently to pay for imports.
The rupee is likely to be pressured due to uncertainty ahead of risks related to some upcoming events. There is an election in Greece on Sunday, followed by meetings of leaders from the Group of 20 industrial and developing nations, and the Federal Open Market Committee next week.
