Rupee at 32-month low, breaches Rs 51-level

The Indian rupee breached the Rs 51 per US dollar-level today after a 32-month gap on good dollar demand from banks and importers in view of the strong dollar overseas.

The rupee resumed lower at Rs 50.90/91 per dollar on the Interbank Foreign Exchange, as against yesterday's close of Rs 50.67/68 per dollar, and dropped further to a 32-month low of 51.01 per dollar before quoting at Rs 50.88/90 per dollar at 1030 hours.

The rupee had last touched Rs 51.20 per dollar on March 31, 2009.

The domestic currency moved in a range between 50.84 per dollar and Rs 51.01 per dollar during morning deals.

Sustained dollar demand from banks and importers on the back of a higher dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.

The US dollar gained and the euro slumped yesterday in the New York market as borrowing costs for Italy, Spain and core members of the euro zone continued to rise, undercutting investors' interest in riskier assets.

Meanwhile, the BSE benchmark Sensex dropped further by 165 points, or 0.98%, in early trade.