The Indian rupee on Wednesday dropped further by 57 paise to 48.68/69 against the US currency in late morning deals following sustained weakness in equity markets and expectations of more capital outflows.
In active trade on the Interbank Foreign Exchange (forex) market, the local unit resumed sharply lower at 48.45/47 a dollar and dipped further to quote at 48.68/69 in late morning deals.
On Tuesday, the rupee had tumbled by 73 paise. It moved in a range of 48.44 and 48.81 in early trade.
Forex dealers attributed weakness in the rupee to bearish equity markets.
Indian benchmark Sensex on Wednesday was down by over 74 points at 1030 hrs while most of the Asian indices were also trading in negative terrain on the back of fall on Wall Street on Tuesday night.
Expectations of more capital outflows due to sustained sluggishness in stock markets amid prolonged global economic slowdown.
Fall in the collections of excise duty and customs duties during October 2008 also displayed possibility of losing pace in the domestic economic growth, which also partly on the rupee sentiment.
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