Rupee closes at new low (Lead)February 27th, 2009 - 8:06 pm ICT by IANS
Mumbai, Feb 27 (IANS) The Indian rupee closed at a new low of Rs.51.10/12 against one US dollar as importers stepped up demand for the greenback and foreign investors pulled out $59.20 million from capital markets during the day.
The rupee had touched a historic intra-day low at Rs.51.17 to a dollar but recovered to close at Rs.51.10-levels.
It had ended Thursday at Rs.50.45.
“There is a heavy demand from importers and a flight of funds due to domestic and international financial institutions selling at capital markets,” said Jagannadham Thunuguntla, chief executive of New Delhi-based brokerage firm SMC group.
Earlier in the day, the rupee stabilised as state-run banks intervened to lift it from the Rs.51 levels. It was, however, not enough, as the Indian currency fell later.
Gold remained in high demand and closed at about Rs.15,411 per 10 grams.