Rupee down at 48.85 per dollar in early trade

The Indian rupee on Tuesday lost further ground and was down by 25 paise at 48.85/86 against the US dollar in early trade on heavy capital outflows amid expectations that the stock market will open lower.

At the Interbank Foreign Exchange (Forex) market, the domestic unit, which touched over one-month low of 48.60/61 yesterday, fell further by 25 paise at 48.85/86 in early trade.

Marketmen said equity markets are expected to open lower, in tandem with other Asian markets, thus leading to heavy capital outflows.

Besides, hardening of the US dollar against major currencies overseas also weighed on rupee sentiment, they said.

Meanwhile, crude oil prices dropped below USD 67 a barrel today, pressured by a stronger dollar and weaker European equities.