Rupee touches new low at Rs 56.5 vs dollar

The rupee today tumbled by 26 paise to trade at a new low of Rs 56.50 against the US dollar in early trade on increased capital outflows and strong demand from importers for the American currency.

Traders said apart from capital outflows by foreign funds, strengthening of dollar against the euro, which plunged to a two-year low on continued euro zone worries and strong month-end demand from importers, particularly oil refiners, mainly put pressure on the rupee.

Yesterday, the rupee had lost 57 paise to close at a low of 56.24 despite RBI's efforts to prop it up.

Meanwhile, the BSE benchmark Sensex plunged over 148 points, or 0.91%, to 16,164.00 in early trade today.