rupee and could drift it towards 55.00 levels once again," said Abhishek Goenka, Founder and CEO, India Forex Advisors.
"The weakness in rupee was mainly on account of recovery in the dollar index, euro falling below USD 1.3200 levels and uncertainties over US fiscal cliff." he added.
The RBI fixed the reference rate for US dollar and euro at Rs 55.0860 and Rs 72.7730 from Rs 54.3880 and Rs 71.2920, respectively, in the last weekend.
The rupee premium for the forward dollar dropped further on sustained receiving by exporters.
The rupee premium for the benchmark six-month forward dollar payable in May declined further at 157-1/2-159-1/2 paise from last weekend's level of 164-165 paise and far-forward contracts maturing in November also remained weak at 301-303 paise as against 309-1/2-311-1/2 paise.
The rupee dropped further sharply against Pound Sterling to end the week at 89.44 from previous weekend's close of 87.82 and also tumbled against the euro to finish at 72.71 from last weekend's level of 71.35.
However, it reacted downwards against the Japanse yen to close at 65.42 per 100 yen from 65.04 last weekend.