Thursday, November 20, 2008

Rupee hits record low of 50.55 a dollar in early trade

Extending its losses in sync with the equity markets, the rupee tumbled by 42 paise against the dollar to 50.44/45, after hitting a new record low of 50.55 in early trade, strained by unabated capital outflows amid renewed worries over the US economy.
The domestic currency at the Interbank Foreign Exchange (Forex) market recovered marginally to 50.44/45 a dollar from early record lows after the central bank intervened in favour of the Indian unit, dealers said.

The rupee today resumed weaker at 50.50/51 a dollar against its previous close of 50.02/03 despite low global crude oil prices.

Marketmen said sustained capital outflows from sliding equity markets weighed on the rupee sentiment.

They said a fall in global markets, following indications of protracted recession as the US Federal Reserve slashed its economic growth forecast for 2009, impacted the market sentiments.

Oil prices fell below USD 53 a barrel in Asian trade this morning, inducing oil refiners to accumulate dollars for their monthly import payments, dealers added.

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