Rupee tumbles 52 paise against dollar on eurozone concerns

Mumbai: The Indian rupee plunged by 52 paise to Rs 52.27 per US dollar in early trade today, extending its slide for the fourth straight day amid appreciation of the American currency against the euro and other rivals overseas and a weak opening in the domestic stock market.

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Dealers attributed the rupee’s fall to dollar gains against the euro on renewed concerns over the debt crisis in the eurozone after the European Central Bank said it had no immediate plans for a large-scale purchase of government bonds.

In addition, a lower opening in the domestic equity market put pressure on the rupee, they said.

The rupee had closed 4 paise lower at Rs 51.75/76 per US dollar in yesterday’s trade amid weakness in local stocks and sustained dollar demand from importers.

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Meanwhile, the BSE benchmark Sensex plummeted by 334.27 points, or 2.02 per cent, to 16,153.97 in opening trade today.

PTI