Mumbai: The rupee was at a three-week low, breaching 55 to the dollar, on continued disappointment after the Reserve Bank of India kept interest rates on hold today.
The currency fell to 55.0550, the lowest since November 29.
A senior dealer, who did not want to be named, said exporters were holding back dollar sales at the time of strong dollar demand, pushing up the dollar.
He added that the rupee may extend its weakness to 55.50 to the dollar.
"It will need the RBI to provide dollar supplies or take out the oil demand from the market to drive rupee back into 54.60-54.10," he added.
