Rupee dives 48 paise to 46.68 a dollar

Rupee dives 48 paise to 46.68 a dollar

Mumbai: The rupee on Thursday ended sharply lower by 48 paise at 46.68/69 against the US currency on fresh dollar demand from oil companies, even as the government allayed fears of a likely curb on capital inflows.

Dealers at the Interbank Foreign Exchange (forex) here said strong dollar in the overseas market and an increased demand for the greenback put pressure on the local currency.

The rupee moved in tandem with the weak domestic stock markets, where the benchmark Sensex shed 213 points, they said.

Even though the government on Thursday ruled out limiting companies from borrowing from overseas market or curbing the rising fund flows from foreign institutional investors, saying the surge in foreign money is not a matter of concern at present, it failed to boost the rupee, dealers said.

Brazil’s latest move to curb capital inflows and weakness in European markets weighed down on the local bourses.