Rupee down 28 paise vs USD in early trade

Continuing its weakness for the fourth straight day, the Indian rupee today depreciated by another 28 paise to an one-week low against the greenback in early trade on increased dollar demand from refiners and a widening trade deficit.

At the Interbank Foreign Exchange (Forex) market, the domestic currency traded lower at 49.04 against the US currency, a fall of 27 paise over the previous close of 48.76/78 a dollar amid absence of any cues from global markets due to new year holidays.

Yesterday, the rupee moved in the range of 48.46 to 48.85 before finishing 7 paise lower at 48.76/78. Dealers said heavy dollar demand from refiners and importers and widening trade deficit mainly put pressure on the Indian currency.

India's exports declined by 9.9 per cent in November 2008, posting a negative growth for the second month running under the impact of a slowdown in major global markets.

Exports dropped to USD 11.5 billion in November this fiscal, from USD 12.7 billion a year ago while imports grew by 6.1 per cent to USD 21.5 billion, leaving a monthly trade deficit of USD 10 billion.