Mumbai: The rupee tumbled against the US currency on Thursday tracking the sharp overseas recovery in the dollar and renewed domestic demand, on the back of meltdown in the local bourses.
Nervousness once again gripped the Interbank Foreign Exchange market, sending the rupee plunging by 37 paise to Rs 45.55/57 per dollar following distinctly weak start at Rs 45.40/42 per dollar on Thursday.
The rupee had rallied by 33 paise to close at Rs 45.19/20 per dollar on Wednesday.
A rebounding dollar overseas amid fears of slowdown in FIIs inflows fuelled heavy dollar demand and exerted renewed severe pressure on the rupee, a forex dealer said.
The meltdown in the stock market amid the slump in Asian market due to the fall at the London Metal Exchange (LME) also weighed heavily on the rupee value, he added.
The BSE sensex plunged by over 450 points to 11751.56 within 20 minutes of resumption of trade this morning.
Foreign Institutional Investors (FIIs) pulled out USD 118.70 million on May 16 from equity markets after outflows of USD 162.10 million on May 15, the day of the global meltdown.
Turning to cross currency trade, the Euro was quoted at Rs 58.04/06, Pound Sterling at Rs 85.74/76 and a Japanese Yen (100) at Rs 41.08/10.
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