Rupee falls to 48.89 against US dollar in early trade

MUMBAI: After hitting the 49-level against the US dollar in opening trade, the Indian rupee recovered 37 paise and was trading at 48.89 due to heavy dollar demand from foreign banks amid a steep fall in Asian equity markets.

Foreign Exchange (forex) dealers said foreign banks made hectic dollar purchases in the Non-Delivery Forwards even as bourses witnessed sustained capital outflows affecting dollar supplies in the market.

In active trade, the domestic currency resumed weak at 49.04 a dollar as against 48.52/53 previously and was quoted at 48.89 at 1200 hrs.

Indian benchmark Sensex today fell by 530.04 points or 4.90 per cent at 1030 hrs on renewed fears of a global recession.