The rupee on Wednesday virtually touched the crucial 49 level before closing at a seven-week low of 48.88/89 against the US dollar, cheaper by 44 paise, backed by the weak local stocks amid heavy capital outflows. The rupee was last seen at this level in May. It had closed at 49.40/42 a dollar on May 15 and in the following trading day, it closed at 47.88/89 against the dollar.
In the domestic arena, the equity markets as the Indian benchmark Sensex declined by 401 points or 2.83 per cent on account of weakness in global stocks in the wake of rising doubts about recovery in the economy.
The rupee resumed weak at 48.76/77 a dollar against its previous close of 48.44/45 a dollar and later traded in a range of 48.73 and 48.94 during the day.
The dealers at the Interbank Foreign Exchange market said that the fall in equity market raised fears of capital outflows even as the foreign institutional investors (FIIs) pulled out sizeable funds on July 7. They said there was little dollar buying or selling during the day.
In the domestic arena, the equity markets as the Indian benchmark Sensex declined by 401 points or 2.83 per cent on account of weakness in global stocks in the wake of rising doubts about recovery in the economy.
The rupee resumed weak at 48.76/77 a dollar against its previous close of 48.44/45 a dollar and later traded in a range of 48.73 and 48.94 during the day.
The dealers at the Interbank Foreign Exchange market said that the fall in equity market raised fears of capital outflows even as the foreign institutional investors (FIIs) pulled out sizeable funds on July 7. They said there was little dollar buying or selling during the day.
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