Rupee depreciates by another 49 paise | business | Hindustan Times
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Rupee depreciates by another 49 paise

business Updated: Dec 23, 2008 13:13 IST

The Indian rupee depreciated further by 49 paise in morning deals to a nearly two-week low of 48.51/52 against dollar due to weakness in equity markets and heavy dollar buying by banks.

In active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 48.20/22 per dollar from Monday's close of 48.02/03 and dropped further to a low of 48.53/50 before being quoted at 48.51/52 a dollar in late morning deals.

Sluggish equity markets mainly weighed on the rupee. Indian benchmark sensex tumbled by another 169 points in early trade while besides Japan, most of the Asian indices also traded in the red in morning deals.

Month-end dollar demand from importers, mainly oil refiners, put pressure on the rupee.

Foreign as well as domestic banks were believed to be buying dollars heavily to meet month-end requirements for their clients.

Short-coverings of dollar ahead of the year-end also weighed on the rupee.

Meanwhile, global crude oil prices fell below $40 a barrel in Asian trade on Tuesday morning.