Rupee at 48.46 against the dollar

MUMBAI: The rupee fell for the second day in a row. It fell by 47 paisa to trade at 48.46 against the dollar by Wednesday 12.30pm, as dollar traded higher in global currency markets and huge losses in Asian shares. This range was last seen two weeks back.

The dollar index - gauge of the dollar's movement against six major currencies - was up 0.1% by noon. High-yielding currencies have been falling since Tuesday with emerging market shares and oil prices slipping, while the dollar was being supported.

Asian stocks fell for the first time in three days as weaker earnings fueled concerns about valuations, prompting a move towards booking profits. When risk aversion sets in, traders move towards currencies
like the yen and the dollar.

"Stocks were in a little overbought state, so profit booking has set in that is taking the toll on the local unit," said Rugved Dhumale, senior vice president, Mecklai Financial, a forex advisory firm.

"Monsoons and swine flu fears are also weighing. But this is more or less a correction, the larger trend remains towards a appreciating rupee," he said.

Bond prices traded unchanged on Wednesday noon with the ten-year benchmark bond yield trading at 7.02% on hopes that RBI's new cash management bills will help in smoother debt auctions.