The Indian rupee breached the Rs 54 per dollar-mark in early trade on Thursday, tumbling by 61 paise to Rs 54.32 per dollar on sustained demand for the American currency from banks and importers amid a stronger dollar in overseas market and persistent foreign capital outflows.
The rupee resumed lower at Rs 54.20/21 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 53.71/72 per dollar, and dropped further to Rs 54.32 per dollar before quoting at Rs 54.28/29 per dollar at 1030 hours.
Sustained foreign fund capital outflows in view of the fall in the equity market, coupled with a stronger dollar in global markets, mainly affected the rupee value against the American currency, a forex dealer said.
In the New York market, the euro slumped to its lowest level since January yesterday, falling below USD 1.30 per euro after Italy’s borrowing costs surged in a bond auction amid reinforced worries about the region’s sovereign-debt crisis.
Meanwhile, the BSE benchmark Sensex dropped further by 223 points, or 1.40 per cent, in early trade.