The Indian rupee tumbled to a nearly two-year low of Rs. 48.01 per U.S. dollar in early trade on Wednesday on persistent dollar demand from banks and importers in view of the firming dollar in overseas markets. The rupee resumed lower at Rs. 47.80/81 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs. 47.59/60 per dollar, and dropped further to a nearly 2-year low of 48.01 per dollar before quoting at 47.85/86 per dollar at 1030 hours. The domestic currency had last closed below this level at Rs. 48.10/11 per dollar on September 29, 2009. Sustained dollar demand from banks and importers on the back of a higher dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said. The U.S. dollar rose against its rivals in the Sydney market today, with investors turning to the greenback as Europe’s debt troubles continued to give global asset markets the shivers.

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