Indian rupee closer to 50 mark vs US dollar

The rupee closed in on the 50-level mark as it plunged 65 paise to settle at 49.80/81 against the US dollar,the lowest level in the last 28 months,due to heavy dollar demand from importers and some banks amid weak equity markets. Heavy dollar demand from importers,mainly oil refiners and some banks,weighed on the Indian currency.

The BSE benchmark Sensex plunged by 148.45 points to 16,936.89,which kept the rupee under pressure right from the onset of the business. Foreign funds pulled out Rs 472 crore from Indian stocks on Thursday,further affecting the rupee value.

The rupee closed grossly weak today on fall in equities and dollar buying by oil companies. The Indian interbank market of USD/INR pair showed vigorous movement, said a dealer.