Rupee continues to be under pressure

MUMBAI: The rupee continues to be under pressure although it has appreciated to 48.98 level against the dollar ��� up 15 paisa from Wednesday's close. Dealers say the local unit would continue to be under the pressure in the short term with the widening deficit and stock markets being in the sell mode.

The local unit had risen to 48.86 levels against the dollar early in the morning, but since then has been retreating.

"The market is still nervous about the direction of the rupee, although the sentiment would continue to be negative," says KN Dey, director at Basix Forex, a forex consulting firm. "The RBI's providing support to the rupee at 49.25 level, is acting as a resistance for the local unit. But in case it breaches that levels, then there's a threat of major depreciation." He points out that exporters have been more hit than importers constantly putting the local unit under pressure.

BSE sensex was up marginal 0.3%, to trade at 8807.

Bonds continue to trade range bound, yield on the 10-year benchmark bond has fallen two basis points to 5.85% from Wednesday's close.

Liquidity is comfortable with call rates trading at 4.25% - near the reverse repo rate ��� at 1 pm as per CCIL.