Business

Rupee closes lower at 48.89 against $

MUMBAI: The rupee continued to fall against the dollar for the third consecutive day at the inter-bank foreign market here on Friday on sustained dollar demand by foreign banks following steep fall in equity markets and poor supply.

The rupee on Friday resumed higher at 48.70/71 a dollar against Thursday’s close of 48.83/84 due to fresh selling of dollars from banks. However, it retracted downwards at the fag-end of the day to 48.88/89, showing a loss of five paise, on renewed buying by banks on behalf of oil companies due to a rise in crude oil prices. The rupee moved in a range of 48.56 and 48.96. The Indian currency fell by 79 paise in the last three days. The dollar short-term funding costs eased for the fourth day in Asia on Friday, although stress remained in several local markets due to heightened counter party and term risks despite the cash pumped in by governments.

Asian markets were mixed as worries about a slowing global economy kept investors on sidelines. Oil prices rose over two dollars in Asia in a technical bounce, after falling below 70 dollars for the first time in more than a year, on worries over falling demand, analysts said. The Bombay Stock Exchange benchmark index fell below the crucial 10,000-mark for the first time in two years to end at 9,975.35.— PTI

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