The Indian rupee extended its Tuesday’s weakness and depreciated by another 14 paise against the US currency in early trade on Wednesday as weak trend in Asian equities raised concerns of capital outflows by funds from the domestic stock markets.
At the Interbank Foreign Exchange (Forex) market,the domestic currency was quoted at 48.86 against the dollar,a fall of 14 paise over the previous close of 48.72/73 a dollar.
The domestic currency ended 15 paise lower at 48.72/73 against the dollar on Tuesday.
Dealers said concerns of capital outflows by funds on fears that the domestic stock markets may open in negative zone in tandem with other Asian bourses mainly put pressure on the Indian rupee.
They said dollar’s strength against other currencies also had some pressure on the domestic currency.
Meanwhile,Hong Kong’s Hang Seng index fell by 3.24 per cent,while Singapore’s Strait Times shed 0.28 per cent in early trade on Wednesday.