MUMBAI: The rupee on Monday plunged to the 49-mark, its lowest closing level in eight years, against the U.S. dollar on fresh dollar demand from banks amid a surge in stock markets in Asia and Europe.
The earlier low level was touched on June 18, 2002, when it closed at 48.99/49 a dollar. Forex dealers said the rupee surged against the dollar in early trade on expectations of capital inflows.
The domestic unit also drew support from a remarkable surge in stocks across Asia and Europe. However, the rupee’s surge was short-lived because banks started buying dollars heavily, suspected to be on behalf of the defence sector.
In volatile trading at the inter-bank foreign exchange market, the Indian unit moved between 48.70 and 49.10 after resuming higher at 48.74/77 against its previous close of 48.88/89. — PTI