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Rupee weakened by 25 paise to breach the 66-level and hit its 13-month low of 66.05 against the US dollar due to appreciation of the US currency overseas.
Increased demand for the dollar from importers also put pressure on the domestic unit.
Meanwhile, the minutes of the last meeting of the Monetary Policy Committee (MPC) indicated the Reserve Bank of India may shift to a hawkish monetary stance in June.
Dealers attributed the rupee's fall to dollar gains against other currencies overseas, persistent foreign fund outflows and a lower opening of the domestic equity market.
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