After a gap of nearly six weeks, the rupee breached the 50 level against the US dollar to end the day at 50.36/37 on concerns that state election the results would make it harder for the central government to revive reforms.
The rupee resumed lower at 49.94/95 a dollar as against the last closing level of 49.84/85.
It dropped further to 50.39 before ending at 50.36/37 a dollar, showing a loss of 52 paise or1.04 per cent.
“There’re fears of a dip in capital inflows. Stock markets also remain depressed and the Sensex has fallen 1,200 points in the last two weeks,” said a dealer. “If the sentiment continues to remain so weak, we could see the rupee at 51 very soon,” said a banker.