The rupee tumbled for the third day on Wednesday falling by 28 paise to close at a fresh two-year low of 48.33/34 against the US currency as dollar demand from importers and some banks remained strong. The strengthening of the dollar overseas and weakness in domestic stocks also put pressure on the rupee,dealers said. Investors reduced their exposure to risk ahead of the Federal Reserves policy meeting,where it is expected to unveil steps to revive a flagging US economy. The domestic unit opened higher at 47.95/96 a dollar from previous close of 48.05 It immediately touched a high of 47.8350 following initial surge in local stocks. However,its early recovery proved short-lived and it fell back to end at 48.33/34,the lowest close since September 15,2009 when it had settled at 48.6350 Traders said that sustained dollar demand from importers,mainly oil refiners,and some banks,in anticipation of further rise in dollar overseas,continued to weigh on the rupee. The fall in rupee value is expected to make imports costlier,adding to the inflation woes. The rupee has weakened by more than 7 per cent against the greenback so far this year and is the worst performer among major Asian peers.
