BLBG : India's Rupee Falls Past 48 a Dollar on Capital-Outflow Concern
By Anil Varma
Oct. 7 (Bloomberg) -- India's rupee fell past 48 per dollar for the first time in more than five years on concern a rout in stocks worldwide will spur investors to take money out of the local equity market.
The currency declined for a third day after the Dow Jones Industrial Average closed below 10,000 yesterday for the first time since October 2004. Japan's Nikkei 225 Stock Average lost 2.1 percent today, after earlier sliding below 10,000 for the first time since 2003. India's benchmark share index fell to a two-year low yesterday.
``The rupee will weaken further as investors continue to pull out of the equity market,'' said Krishnamurthy Harihar, a treasurer at Development Credit Bank Ltd. in Mumbai. ``The turmoil across global markets is going to affect the sentiment on the local currency.''
The rupee fell as much as 0.2 percent to 48.02 per dollar, the lowest since January 2003, before trading at 47.90 as of 9:10 a.m. in Mumbai, according to data compiled by Bloomberg.
To contact the reporters on this story: Anil Varma in Mumbai at firstname.lastname@example.org.