Rupee hits 47-level against US dollar

Rupee today breached the 47-level against the greenback for the first time in more than two years on sustained demand for US dollar amidst shortage of supply even as the stocks markets in Europe and Asia tumbled.

In hectic trade at the Inter-bank Foreign Exchange (forex) market, the local currency resumed lower at 46.88/90 a dollar from its last weekend's close of 46.54/55 a dollar and tumbled to the 47-level against dollar.

The rupee had last seen the 47-level on July 19, 2006. Forex dealers said a plunge in local stocks and sustained dollar demand amid consistent capital outflows weighed on the rupee sentiment.

They said investors anticipated further scarcity of dollar amid American financial upheaval spreading to Europe.

Meanwhile, the Indian benchmark Sensex today plunged by more than 5.34 per cent in the late afternoon trading.