Rupee hits all-time low of 51.81/82 in early trade

Extending its losses to sixth day in a row, the Indian rupee today hit a new life-time low of 51.81/82 against the American currency in morning trade due to continued capital outflows amid dollar demand.

The domestic currency resumed sharply lower at 51.50/55 a $ against its last weekend's close of 51.12/14 a $ and later tumbled to an all-time trading low of 51.81/82 a $ before being quoted at 51.72/73 a $ at 1150 hrs.

Dealers at the Interbank Foreign Exchange market (forex) said a sharp fall in local stocks raised fears of increased capital outflows from equity markets, which exerted pressure on the local currency.

 

They said there was some dollar demand as foreign banks which reportedly were buying the greenback here and selling in non-deliverable forwards were taking the benefit of stronger dollar in overseas markets.

The Indian benchmark Sensex this morning fell sharply by 210 points or 2.36 per cent.

Asian Indices were down about 2.0 to 4.0 per cent in early trade today.