The rupee on Friday closed below the key 57-mark against US dollar for the first time in a year sliding by 22 paise to 57.06, casting a shadow on the economy as imports become costlier, current account deficit woes worsen and inflation risks rise.
At the Interbank Foreign Exchange (Forex) market, rupee resumed higher at 56.70 on initial rise in local stocks. It, however, later turned negative on heavy dollar demand from importers, mainly oil refiners, to touch a low of 57.12. Rupee finally ended at 57.06, a fall of 22 paise or 0.39 per cent.
A weak rupee makes imports costlier, including oil and other commodities. It also affects dollar-denominated liabilities of corporates.