Rupee opens low at 44.76/78 against US dollar

Mumbai, Dec 19 (UNI) The rupee today opened lower by three paise and was quoted at 44.76/78 per US dollar against the previous day's close of 44.74/75 per USD, dealers said.

The Indian rupee fell to it's lowest in nearly a week on Tuesday, as a fall in Asian currencies due to monetary measures in Thailand, led to concerns that overseas investors may pull out some funds from the Indian equities market.

The trigger for the rupee slide was a sharp fall in Thailand's stock market, after the Thai central bank announced measures to curb a steep rise in the currency. This has led to concerns of a cascading effect in other markets as well.

Later, the rupee traded 0.2 per cent lower at 44.83/84 per dollar, after touching 44.87 per dollar, it's lowest since 13 December 2006.

It ended at 44.7350/7450 on Monday.

The rupee is still up nearly 5 per cent from a three-year low of 47.04 in July on strong foreign fund inflows, which have topped Rs 800 crore this year. Foreign investors bought about Rs 200 crore in November.

Foreign banks supposedly are acting aggressive on buying dollars.

There are concerns that a fall in Thai stocks can impact India.

India's benchmark share index was 0.4 per cent lower on the day, at 13,668.41 points.

The Indian central bank is suspected to have intervened in the currency market in the past month, when the rupee hit an eight-month high of 44.35. It does so to calm market volatility, brokers added.

UNI AR WD AW1221