Mumbai, July 20 - In a see-saw trade, the Indian rupee reacted downwards by 20 paise to settle at 55.32 against the Greenback following weakness in local stocks amid firm dollar overseas.

Dollar demand from importers, mainly oil refiners, also weighed on the rupee while sustained capital inflows limited the rupee fall to some extent, a forex dealer said.

The rupee resumed lower at 55.25 a dollar from previous close of 55.12 at the Interbank Foreign Exchange (Forex) market today and immediately touched a high of 55.08.

Later, it fell down to a low of 55.33 at the fag end before closing at 55.32, showing a fall of 0.36 pct.

Yesterday, it had gained 36 paise or 0.65 pct.

The Indian benchmark sensex broke 3-day of gaining string and concluded down by 120.41 points or 0.70 pct.

The dollar index was up by 0.21 pct against a basket of six major currencies as appetite for risk assets weakened before the weekend and as investors remained focused on the euro-zone debt worries. The New York crude oil was trading above USD 91 a barrel in Europe today.

Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said,"The INR witnessed a volatile session re-visiting the high and low of the day tracking weak global cues and lack luster earning session. The dollar index headed for fresh intraday highs during the session on global risk aversion."

"The markets are closely watching yesterdays commitments of New Delhi and the progress which is hampered by the resignation of the top two highly ranked cabinet ministers.

The Indian market dented the yesterday gains and ended sharply lower. The RBI has also recasted the norms for bank loans for corporate making more stringent rules for greater credibility and has advised the banks for adopting Carrot and Sticks policy. PTI