Rediff.com  » Business » Re tumbles to 50 against dollar in early trade

Re tumbles to 50 against dollar in early trade

Source: PTI
October 24, 2008 09:38 IST
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For the first time, the Indian rupee on Friday breached the 50-mark per dollar in early trade on the  back of heavy capital outflows by foreign funds and increased demand for dollar denominated imports.

At the Interbank Foreign Exchange market, the  local currency, which closed at 49.81/82 against dollar on Thursday, plunged by 22 paise to 50.03 in early trade on Friday.

On Thursday, the government had said that the rupee is expected to be less volatile with pressure on capital inflows easing.

"The value of rupee is something which is based upon a large number of parameters including capital inflows. With pressure easing on these parameters, rupee is expected to be less volatile," Economic Affairs Secretary Ashok Chawla had said.

Meanwhile, Finance Minister P Chidambaram had attributed depreciation of the rupee to redemption pressures faced by some FIIs.

Rupee has depreciated by about 20 per cent since the beginning of this fiscal.

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