Rupee falls to 2-week low

The rupee fell to its lowest in two weeks on Wednesday, tracking gains in the global dollar and after rating agency Standard & Poor's said downgrade risks remained even after the current spate of reforms.

The fall in the rupee, exacerbated by the S&P warning, again highlighted the local currency's vulnerability to its twin deficits -- the external account as well as the fiscal deficit.

"I do not expect any sharp gains in the rupee as foreign fund inflows into stocks seem to have slowed in the past few sessions. Reform measures have not resulted in any real flows," said Param Sharma, director and chief executive at NSP Treasury Risk Management.

The partially convertible rupee closed at 53.0450/0550 per dollar versus its previous close of 52.72/73, a fourth successive session of fall and its longest losing streak since late July.