Indian rupee depreciated to settle at little under Rs.47.80 per dollar in early trade today, on fresh dollar demand from banks and importers, hurting economy, negatively impacting inflation and rendering India fuel bills dearer. Adding to the currency woes is weakness in the local equity markets led by unfavorable global cues on account of foreign money outflows.

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Rupee shed around 30 paise this morning, reflecting erosion of purchasing power of rupee based on demand for and supply of dollars vis-à-vis rupees. Forex analysts have attributed dollar’s strength to weakening of euro, reiterating the belief that the American currency is likely to maintain its status as world’s currency reserve for times to come.

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