Friday, February 20, 2009

Rupee falls by 21 paise against USD to 49.03

The Indian rupee extended yesterday's weakness and depreciated by another 21 paise against the greenback in early trade today on fears of more capital outflows from the domestic bourses after Asian equity markets retreated.

At the Interbank Foreign Exchange (Forex) market, the domestic currency quoted weaker at 49.03 against the US currency, a fall of 21 paise over the previous close of 48.82/83 a dollar.

The domestic currency has yesterday ended 15 paise lower at 48.82/83 against the dollar.

Dealers said concerns of capital outflows by funds on fears that domestic stock markets may open in the negative zone, in tandem with other Asian bourses, mainly put pressure on the Indian rupee.

They said dollar's strength against other rival currencies also had some impact on the domestic currency.

Meanwhile, Hong Kong's Hang Seng index fell 3.01 per cent, Japan's Nikkei shed 1.5 per cent and Singapore's Strait Times dropped 1.29 per cent in early trade today.

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