The Indian rupee fell by 42 paise to hit a new two-year low of 48.23 against the US dollar in early trade on Tuesday.
Renewed weakness in the Rupee was driven by weakness in the euro as worries over the European debt crisis deepened following Standard & Poor's downgrade of Italy's sovereign rating. On Monday, S&P downgraded Italy's rating by one notch, saying it sees weakening economic growth prospects for the nation and higher-than-expected levels of government debt.
Dealers said a slide in the euro against the US dollar put pressure on the rupee though a higher opening in the equity markets limited the losses.
On Monday, the rupee had tumbled by 55 paise to close at a fresh two-year low of Rs. 47.81/82 against the American currency on strong demand for the greenback, which is seen as a safe haven investment.
Export stocks surged following a slide in the rupee. IT stocks were the top gainers as they earn most of their revenues in dollars. The BSE IT index was trading with over 2 per cent gains at 1100 hourS.
ROHIT KALIA
PGDM 3RD SEM
Renewed weakness in the Rupee was driven by weakness in the euro as worries over the European debt crisis deepened following Standard & Poor's downgrade of Italy's sovereign rating. On Monday, S&P downgraded Italy's rating by one notch, saying it sees weakening economic growth prospects for the nation and higher-than-expected levels of government debt.
Dealers said a slide in the euro against the US dollar put pressure on the rupee though a higher opening in the equity markets limited the losses.
On Monday, the rupee had tumbled by 55 paise to close at a fresh two-year low of Rs. 47.81/82 against the American currency on strong demand for the greenback, which is seen as a safe haven investment.
Export stocks surged following a slide in the rupee. IT stocks were the top gainers as they earn most of their revenues in dollars. The BSE IT index was trading with over 2 per cent gains at 1100 hourS.
ROHIT KALIA
PGDM 3RD SEM
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