Rupee weakens by 35 paise at 49.35 per dollar in morning trade

Mumbai, July 13 (PTI) The Indian rupee on Monday lost 35
paise at 49.35 against the US dollar in the morning trade on
dollar buying by banks and sustained slide in the equity
markets raising fears of more capital outflows.

The Indian benchmark Sensex tumbled by 235 points or 1.74
per cent at 1030 hrs on Monday amid weak Asian cues.

In fairly active trade at the Interbank Foreign Exchange
(forex) market, the domestic currency resumed lower at
49.10/11 a dollar from its last close of 49.00/02 a dollar
and later hit a low of 49.35 before being quoted at 49.28/29 a
dollar in late morning deals.

Forex dealers said banks bought dollar as the rupee
continued its slide against the American currency, which was
stable against major world currencies in the overseas markets.

They said local stocks this morning fell sharply
leading to fears of increased capital outflows from equity
market.

Foreign Institutional Investors (FIIs) have been net
sellers so far in July. PTI