Rupee hits another record low of 50.20/21 a dollar

MUMBAI: Intervention by the Reserve Bank through state-owned banks notwithstanding, the Indian rupee today ended at yet another record low of 50.20/21, cheaper by 18 paise against the greenback due to exodus of foreign investments and descending equity markets.

Dealers said heavy dollar selling caused high level of volatility at the Interbank foreign exchange (forex) market even as the Indian unit moved widely in a range of 49.88 to 50.60 during the day.

They said unstoppable capital outflows and bearish local stocks were the main factors for the rupee's downfall.

It resumed weaker at 50.50/51 a dollar against its previous close of 50.02/03 a dollar.

Sustained dollar demand from importers amid negligible supplies also weighed on the rupee sentiment, they added.

Fears of more portfolio outflows from emerging economies in the light of the current financial crisis, which seems to be blowing out of control, heightened worries that it may pull global economy deeper into recession.

There was a virtual meltdown in global equity markets today after the release of a dismal US economic data and the Federal Reserve lowered the US growth forecast for 2009.

Indian benchmark Sensex tumbled by 323 points or 3.68 per cent to a three-year closing low. Asian indices ended down by about 1.7 per cent to 7.0 per cent.