The weakening trend in the rupee continued Tuesday on the back of dollar demand from oil companies and other corporates.
In the morning there was some dollar selling by exporters when the equity markets were strong, but subsequent dollar buying by oil companies pulled the rupee down again, said forex dealers.
The rupee opened at 47.18 and closed at 47.60, 38 paise lower from the previous close of 47.22.
“The rupee touched the psychologically important mark of 47.60. It is possible that it may cross 47.80 and touch the 48 level,” said a forex dealer with a public sector bank.
In the overseas market, the dollar remained strong due to continued fears about the debt crisis in the Euro zone.
“The liquidity squeeze in the overseas market is making the dollar dearer. The risk aversion and FII outflow is adding to the pressure on the rupee,” said the dealer
In the forward premia market, the 12-month premium closed at 1.9 per cent (2.4 per cent).