January 24, 2013 / 4:25 AM / 5 years ago

Rupee extends losses on oil demand; share losses hurt

Reuters Market Eye - The rupee extends losses to 53.85/86 versus its previous close of 53.6650/6750, tracking a further decline in the domestic share market and on the back of strong dollar demand from oil firms.

A cashier counts currency notes inside a bank in Lucknow July 16, 2009. REUTERS/Pawan Kumar/Files

Traders say there are no dollar inflows in a holiday-shortened week, with banks preferring to cover short positions ahead of the long weekend. Forex and debt markets are closed on Friday for a local holiday.

Demand from oil firms also stronger due to the approaching month-end, when firms need to pay for their imports.

However, traders expect strong resistance around 53.90 levels, limiting further sharp gains.

Reporting by Swati Bhat

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