Date:08/10/2008 URL: http://www.thehindu.com/2008/10/08/stories/2008100855511500.htm

Business

Rupee breaches 48-mark

MUMBAI: After hitting the 48-mark for the first time since December 2002, the Indian rupee on Tuesday closed weaker by 11 paise at 47.93/94 against the greenback due to sustained capital outflows and dollar demand from oil refiners.

In volatile trading at the inter-bank foreign exchange market, the domestic currency moved between 48.16 and 47.72 after resuming weak at 47.98/48.02. It had closed at 47.82/83 on Monday.

Forex dealers said the Indian unit recovered from its intra-day low as banks heavily sold dollars, probably on behalf of the central bank, which on Monday slashed the cash reserve ratio by 50 basis points in a bid to inject liquidity in the system.

The RBI fixed the reference rate for the dollar at Rs. 48.01. — PTI