Rupee tumbles further against dollar

Continuing its sharp slide, the rupee tumbled 47 paise to a touch a new low of 55.86 against the US dollar in early trade due to persistent demand for the American currency from banks and importers amid its strengthening overseas against other currencies as well.

The rupee has continued the fall for the sixth day in a row despite some steps taken by the Reserve Bank amidst capital outflows from foreign funds and weak stock market.

The rupee resumed lower at 55.65/66 per dollar as against the last closing level of 55.39/40 per dollar and dropped further to an all-time low of 55.86 per dollar.

Sustained dollar demand from banks and importers in view of firm dollar in the overseas market coupled with capital outflows from foreign funds mainly affected the rupee value against the dollar, a forex dealer said.

The BSE benchmark Sensex dropped by 119 points of 0.74 percent in the early trade Wednesday.

Data showed that FIIs sold stocks worth Rs 283 crore yesterday with Sensex closing 157 points lower.

In New York market, the US dollar rose to its highest level since January against a basket of major currencies yesterday, bolstered by a drop in the Japanese yen after Fitch cut Japan's sovereign rating to A+ from AA.