May 31, 2012 2:04 PM

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Rupee hits new record low of 56.50 against dollar

The rupee today tumbled by 26 paise to trade at a new all-time low of56 rupees 50 paise against the US dollar in early trade. This followsincreased capital outflows and strong demand from importers for theAmerican currency.Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a two-year low on continued euro-zone worries and strong month-end demand fromimporters, particularly oil refiners, mainly put pressure on the rupee.Yesterday, the rupee had lost 57 paise to close at record low of 56rupees 24 paise despite RBI's efforts to prop it up.

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