Indian rupee at 2 week low thanks to FII for taking out USD from indian markets

Indian National Rupee or poupularly known as INR touched two week low today at 48.88 / US $ since foreign investor's took out much investment which they made in indian markets over past couple of months due to which SENSEX ans Nifty also closed down today(read full report).

The details about the weak rupee is as follows (ovser past 2 days) :

The partially convertible rupee ended at 48.88/89 per dollar, 0.9 per cent below Tuesday's close of 48.45/46 per dollar. It is down 2 per cent so far this week. It hit a low of 48.9450 in intraday deals.

One-month offshore non-deliverable forwards were quoting at 48.97/49.07 per dollar in late Indian trade.

The dollar was steady while the yen climbed on Wednesday as uncertainty about the global economic outlook reined in investor risk-taking.

According to barclay's indian rupee will trade between 48.5 to 49.5 against a single US dollar.

INR falls 39 paise against US $

Indian rupee closed above the crucial 48 level against the dollar for the first time in five weeks in tandem with a sharp slide in local stocks, raising fears of capital outflow from equity.

Resuming lower at 47.84/85 a dollar, the domestic unit later moved in a range of 48.16 and 47.81 before ending the day at 48.13/14 against the dollar, cheaper by 39 paise from its last close of 47.74/75 a dollar.

Dealers at the Interbank Foreign Exchange (forex) market said continued capital outflows in the week weighed on rupee sentiment.

Foreign institutional investors pulled out nearly USD 193.60 million in the last two days. They were believed to be heavy sellers in equity today.

The Indian benchmark Sensex plunged by 435 points or 2.91 per cent following dramatic sell-off by foreign funds.

Meanwhile, the dollar, which was buoyant in the overseas market in the last few days, was little changed against the basket of currencies.