The Indian rupee headed towards the 50-mark as it fell by 37 paise to 49.71/72 against the greenback this morning in sync with bearish equity markets due to sustained capital outflows.
Traders, however, anticipated intervention by the central bank at the important 50-level.
In lacklustre activity at the Interbank Foreign Exchange (forex) market, the domestic currency resumed weak at 49.55/56 a dollar from its overnight close of 49.34/35 a dollar and later fell further to 49.71/72 a dollar in late morning deals.
Forex dealers said the rupee remained under pressure due largely to capital outflows from equity markets which had adverse impact of global financial crisis.
Meanwhile, Finance Minister P Chidambaram said the direction of capital flows may reverse in a month or two.
Indian benchmark Sensex was down 261.11 points or 2.81 per cent at 1015 hours today. Asian Indices were trading lower by about 1.3 per cent to 3.3 per cent in early trade.
US stocks wilt; ADRS end mixed...
Image: A pedestrian walks past posters of foreign currency notes displayed at a commercial area | Photograph: Asif Hassan/AFP/Getty Images
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