Rupee again breaches 56 level against US dollar

Continuing fall for the third day in a row, the rupee today again fell past the psychological level of Rs 56 against the US dollar in early trade on heavy demand for the American currency from importers amid concerns over euro-zone worries.

Dealers said besides strong month-end demand from importers, particularly oil refiners, the euro's weakness against the American currency on persistent euro-zone worries, kept pressure on the Indian currency.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened lower at Rs 56 and continued its downward journey to trade at Rs 56.16, down 49 paise against its yesterday's close of Rs 55.67.

Meanwhile, the BSE benchmark Sensex fell by 113.55 points, or 0.69 per cent, to 16,325.03 in early trade today.