Rupee opens low at 44.33/35 against USD

Mumbai, Feb 28 (UNI) The rupee today resumed lower at 44.33/35 against the US dollar due to weak trend in most Asian currencies and feared as sell off in emerging market stocks and bonds would prompt foreign investors to reverse local investments.

Later, the partially convertible rupee was at 44.35/36 a dollar, down about 0.3 per cent from Tuesday's close of 44.21/22.

"The rupee's fall is mirroring the stock crash and it may fall further to 44.45 levels. On a budget day, the rupee will track the fortunes of the stock market. But likely central bank intervention at lower levels cannot be ruled out," a leading foreing bankers said.

Investors dumped Asian shares and emerging market bonds as a global sell-off that started in China gathered momentum after Wall Street shed more than 3 per cent on Tuesday.

Indian shares had fallen 1.25 per cent to their lowest close in two weeks on Tuesday, as investors cut positions on tax worries on the eve of the national budget, and as sentiment was hit by a falling Chinese stock market.

The rupee has appreciated about 6.5 per cent since hitting a three year low last July, and the Central Bank is uneasy about the pace of the currency's appreciation, analysts said.

UNI