Rupee falls in line with the Sensex

Mumbai, July 22 (PTI) The Indian rupee ended lower by 10
paise against the US currency, in step with the fall in equity
markets.

In fairly active trade at the Interbank Foreign Exchange
market, the local unit resumed better at 48.38/40 a dollar
from Tuesday's close of 48.42/44 and improved further to a
high of 48.25 on the back of a smart rise of nearly 307 points
in morning deals.

Forex dealers said exporters sold dollars in early trade
as the US currency was lower in Asia this morning after
Federal Reserve Chairman Ben Bernanke expressed a cautious
view about the US economy, helping the rupee to recover
losses.

However, a sudden bout of selling in equities despite
good first-quarter results by some corporate majors weighed on
the rupee and it fell to 48.63 per dollar.

It later settled the day at 48.52/53 a dollar. On Tuesday
the rupee was down by 22 paise.

The Indian benchmark Sensex Wednesday ended lower by
219.37 points or 1.46 per cent while Asian indices closed
mixed.

European markets, however, were trading lower on
Wednesday afternoon.

Meanwhile, global oil prices continued to rule above USD
64 a barrel in Asia. PTI VMP
RAI