Rupee down 57 paise versus dollar

The Indian rupee tumbled by 57 paise to Rs 48.90 per US dollar in early trade today on persistent dollar demand from banks and importers amid strengthening of the American currency overseas and a sharp fall in the domestic equity market.

The rupee resumed lower at Rs 48.78/79 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 48.33/34 per dollar, before dropping further to Rs 48.90 per dollar. The rupee was quoted at Rs 48.72/73 per US dollar at 1030 hours.

The domestic currency moved in a range between Rs 48.68 and Rs 48.90 per dollar during morning deals.

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

In the New York market, the dollar rebounded against the euro and other major currencies yesterday after the Federal Reserve said it will swap shorter-term treasury bonds for securities with longer maturities, keeping with expectations.

The Bombay Stock Exchange benchmark Sensex was down by 292 points, or 1.71%, in early trade today.