Rupee ends weaker at 48.46/48 per US dollar

Mumbai, Oct 10 (UNI) The Rupee today ended softer at 48.46 against the US dollar compared to 48.02 on the previous day on sustained heavy selling pressure of dollars by state-run banks.

After plunging to a historic level of 49.30 in morning trade, the Indian currency recovered to 48.93 against the US dollar at 1250 hrs after RBI announced a further one per cent cut in cash reserve ratio.

In wild fluctuation at the Interbank Foreign Exchange (forex) market, the domestic currency was trading lower by 94 paise at 1250 hrs after RBI announced a further one per cent cut in cash reserve ratio to 7.50 per cent.

Rupee fell to 49.30 on mounting fears of heavy capital outflows after global credit crisis spread to Asia, a leading forex dealer said.

Turmoil in bourses and growing fears about a global recession caused worries that there would be heavy capital outflow from equity, he added.

Indian benchmark Sensex tumbled by 800 points before staging a 50 per cent recovery on the back of institutional support.

The Reserve Bank of India made a surprise move to hike the Cash Reserve Ratio (CRR) by a hefty 100 basis point, taking a total raise of 150 basis points effective from October 11, releasing Rs 60,000 crore into the banking system.

Meanwhile,the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 48.72 per unit, down by two paise, against Wednesday's rate of Rs 48.74 per dollar. The reference rate for Euro also declined by 22 paise at Rs 65.90 per unit from Wednesday's rate of Rs 66.12 per unit, an RBI release stated.

However, the six-month and annualised forward dollar premium were lower 0.10 ( 0.68) per cent and 0.18 (0.25 ) per cent respectively.

The rupee drifted lower in the last few days at 65.80/82 (65.38/40) per unit against the Euro. It closed at 82.46/48 (83.84/86) per unit against the Pound Sterling and at 48.90/92 (47.90/92) per hundred units against the Japanese Yen.

UNI AR OBB VKG1910