The Indian rupee weakened to its lowest level this week on Wednesday, tracking losses in the euro after a media report quoted German Chancellor Angela Merkel as expressing doubts on the success of the European project.
The partially convertible rupee closed at 55.48/49 per dollar as per the SBI closing rate, weaker than its close of 55.1250/1450 on Tuesday. It dropped to as low as 55.55 during the session, its lowest since July 13.
The one month offshore non-deliverable forward contracts were quoted at 55.73 while the three-month was at 56.34. The most-traded near-month dollar/rupee contracts on the currency futures market on the National Stock Exchange, MCX-SX and the United Stock Exchange, all closed at around 55.49 with a total volume of around $4.4 bi l lion.