Rupee reacts downward by 12 paise

Rupee reacts downward by 12 paise

Mumbai: The Indian rupee slid by 12 paise to Rs47.50/51 in line with the equity markets against the greenback in late morning deals on Tuesday.

The domestic unit moved in the range of Rs47.46 and Rs47.65 per dollar before being quoted at Rs47.50/51 on the Interbank Foreign Exchange (Forex) market.

It resumed sharply lower at Rs47.63/64, following the weakness in global equity markets.

At 10:30am, the Indian benchmark Sensex was down by nearly 338 points or 3.21%, while most of the Asian indices also quoted in the red.

Fall in global crude oil prices near $60 a barrel attracted oil refiners to buy dollars to meet their import requirements, which also weighed on the rupee.

Market participants are still wary about the recovery in sluggish world economy and expect more capital outflows in the near future, despite last week’s net purchases.

Firmer dollar against most of the major rivals also dampened the rupee sentiment.