Rupee fell 0.7% to trade at 48.73 levels

MUMBAI: The rupee fell 0.7% to trade at 48.73 levels against the dollar at 2 pm Monday, on continued speculation of foreign funds continuing to pull out from the Indian stock market. It had opened at 48 levels against the dollar.

The trend reversal that began on Friday thus continues unabated with the rupee falling further.

This level is an intraday low and reflects better setiment about dollar in overseas markets, dealers said. The rupee had closed on Monday at 48.01.

Dealers said the fall in the equity indices had led to a huge demand for the dollar in the spot currency markets.

The benchmark 10-year bond appears to be in consolidation mode as dealers said traders were resorting to profit booking after rising every day of the past week. It wa strading at 5.62% at 2pm, not much changed since Monday close.
India's main share index BSE sensex was down 2.37% at 2 pm on deepening worries about the global economic outlook and tracking weak Asian markets.

Liquidity situation appeared to be cautious with call money rates trading at 6.30% at 1.30 pm, with voumes at 11,000 crores - indicating good activity.