The rupee continued to trade close to its lowest level in nearly 32 months on Tuesday afternoon weighed by over 1 per cent losses in domestic shares, a sharp fall in the euro and dollar demand from oil importers.

* Traders said the rupee could test the 51 per dollar mark during the day if the euro and shares decline further.

* At 2:45 p.m., the partially convertible rupee was at 50.67/68 per dollar, after hitting 50.71 in early trade, its weakest since March 31, 2009. It had closed down 0.3 per cent at 50.285/295 on Monday.

* Indian shares were trading down 1.2 per cent, as worries about weak corporate earnings and high inflation weighed.

* The euro fell on Tuesday, coming close to recent lows versus the dollar and hitting a one-month low against the yen as rises in Italian and Spanish bond yields underscored the difficulties facing policymakers in containing the region's debt crisis.

* Traders said dollar demand from oil importers was also weighed while exporters stayed out on hopes the rupee would depreciate further and provide better opportunities to sell.

Leave Your Comment(s)