Rupee sheds 20 paise to 51.90 against US dollar

The Indian rupee fell by 20 paise to Rs 51.90 per US dollar in early trade, Wednesday on fresh dollar demand from banks and importers.

The rupee resumed lower at Rs 51.84/85 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 51.70/71 per dollar, and fell further to Rs 51.90 per dollar before quoting at Rs 51.86/87 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 51.60 and Rs 51.90 per dollar during morning deals.

Fresh dollar demand from banks and importers at current levels mainly affected the rupee value against the dollar, a forex dealer said.

Meanwhile, crude oil prices slid by 54 cents to USD 101.70 per barrel in early Asian trade as traders booked profits on the back of recent gains, with weak US energy demand dampening the market mood despite concerns over the situation in Iran and Nigeria, analysts said.

Rupee hits record low past 54/dollar

The rupee dropped to another record low of 54.30 against the dollar on Thursday as concerns heightened slowing domestic growth will spur further capital outflows.

The partially convertible rupee hit an all-time low of 54.30 per dollar in early trading, taking losses to about 4 percent this week.

The domestic currency had tumbled by 48 paise to close at a record low of Rs 53.71/72 per dollar in the previous session on strong demand for the American currency and strengthening of the dollar against its rivals overseas.

Forex dealers said in addition to continued demand for the American currency from importers and some banks, dollar gains against the euro and other currencies amid concerns over the eurozone debt crisis put pressure on the Indian rupee.

Any major intervention by the central bank is unlikely given India's relatively limited foreign exchange reserves.

India's wholesale prices rose 9.11 percent in November, leaving inflation stubbornly high and suggesting the central bank would hold rates steady at its review on Friday even as worries grow over the health of the economy. 
   
Economists expect the central bank to accelerate monetary easing in 2012 as economic conditions worsen. 
   
The euro nursed heavy losses in Asia on Thursday, having plumbed its lowest level in 11 months, as signs the European debt crisis could run sent investors fleeing risk assets for US Treasuries.  

Rupee drops to historic low at 53.40 against US dollar

The Indian rupee tanked by 56 paise to a historic low of Rs 53.40 per US dollar in early trade Tuesday due to persistent demand for the American currency from banks and importers on the back of a higher dollar in overseas markets and weak domestic equity markets.

The rupee resumed lower at Rs 53.10/11 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 52.84/85 per dollar, and dropped further to an all-time low of Rs 53.40 per dollar before quoting at Rs 53.27/28 per dollar at earlier trade.

Sustained dollar demand from banks and importers in view of a stronger dollar in overseas markets and foreign capital outflows affected the rupee value against the dollar.

The US dollar gained against major currency rivals in the New York market yesterday, while the euro fell to its lowest level in two weeks amid renewed concerns that European leaders aren't doing enough to contain the region's sovereign debt crisis.

Meanwhile, the BSE benchmark Sensex was down by 12 points, or 0.07 percent, in early trade.