The Indian rupee fell by 40 paise to 46.74/75 against the US dollar in early trade on Thursday due to capital outflow by foreign funds following a plunge in the Asian bourses.
At the Interbank Foreign Exchange (forex) market, the Indian currency yesterday appreciated by 55 paise to 46.34 against the US dollar following RBI's move to hike the maximum interest on NRI deposits by 50 basis points for dollar and rupee to pave the w ay for increased inflow of greenback.
Meanwhile, the Bombay Stock Exchange benchmark Sensex lost over 700 points in early trade today owing to massive selling by funds in line with deepening global financial crisis.
Yesterday, Commerce Minister Mr Kamal Nath had said that the government is not interfering with the rupee movement but will have to “step in” if it finds “artificial” volatility in the exchange rate.
