Rupee continues southbound journey, slips to 45.45

The Indian rupee continued its slide for another day today and virtually hit a 23-month low of 45.45 during early trade largely due to strengthening dollar overseas amid increased pressure on the domestic currency.     

The US dollar jumped to a one-year high against the single european currency in overseas markets.     

In active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed sharply lower at 45.35/36 a dollar from its previous close of 45.11/12 a dollar and later hit a low of 45.45 level before being quoted at 45.39/40 a dollar in late morning deals.     

Forex dealers said sustained dollar demand from oil companies in the light of low crude oil prices and inadequate dollar supplies weighed on the rupee sentiment.  They said some dollar selling was seen when the rupee hit the 45.45 level this morning.     

All major currencies weakened against dollar due to increased risk aversion, a leading banker said.     

Meanwhile, Asian stocks suffered a sharp setback on continued worries about the global financial crisis.     

Indian benchmark Sensex was down 186 points or 1.27 per cent in the initial fifteen minutes of trading.

Also Read:- Market expects the rupe to fall further