MUMBAI: Moving in sync with the equity market, the Indian rupee slipped to the Rs 45-level against the US dollar after six weeks, shedding 36 paise to Rs 45.10 in early trade on foreign capital outflows amid persistent dollar demand from importers.
The rupee resumed lower at Rs 44.90/91 per dollar on the Interbank Foreign Exchange, as against last weekend's close of Rs 44.74/75 per dollar, and dropped further to Rs 45.10 per dollar before quoting at Rs 45.05/06 per dollar at 1030 hours.
The domestic currency moved in a range between Rs 44.90 and Rs 45.10 per dollar in early trade.
The continued decline in the equity market mainly affected the rupee value against the dollar, a forex dealer said. The Indian benchmark Sensex dropped further by 518 points, or 3.00%, in early trade today.
The fall in crude oil prices was another factor behind the fall in the rupee value.
Crude prices fell by more than 2% in Asia today, with the sentiment hit by Standard & Poor's decision last week to cut Washington's top-notch credit rating for the first time, analysts said.
In morning trade, New York's main contract light sweet crude for September delivery tumbled by $2.33, or 2.68%, to $84.55 a barrel, from its previous close on Friday.
