Rupee may slide to 55 by March: Assocham

The rupee may depreciate against the US dollar further up to Rs 55 level by March next year if the weak run of the global economy continues, industry chamber Assocham said today.

It also said that a weak rupee will further put pressure on the overall inflation.

The rupee today breached the 53-level for the first time against the dollar on sustained capital outflows amid compounding woes of the Indian economy.

Assocham said the rupee-dollar exchange rate could well reach the levels of 53.80 by January next year and 55.10 by March if the global economy continues to be bleak like in recent months.

The domestic currency slid against the dollar from 44.40 in July to 45.50 in August, 47.60 in September, 49.30 in October and 52.70 this month, it said.

"Such wild fluctuations within a short span of time are unsettling and leaving imprint on rest of the economy," it said, adding it will add further pressure on the overall domestic inflation.

It will particularly hit industrial sector and put higher pressure on cost of items like oil, imported coal, metals and minerals and imported intermediate products.