Rupee depreciates to 48.56 against dollar

The Indian rupee on Monday depreciated by 32 paise against the dollar in early trade on expectations of capital outflows from the stock markets following weak global cues and strong demand for the US currency from importers.

At the Interbank Foreign Exchange (forex) market, the domestic currency fell by 32 paise to 48.56 a dollar. The rupee closed 14 paise lower at 48.24/25 against the US currency in the previous session.

Dealers said hopes of more capital inflows by foreign funds as stock markets may open lower in line with other Asian bourses mainly put pressure on the rupee.

Notable demand for the greenback from the importers and the US currency's gain against other major currencies also weighed on the rupee sentiments, they added.

Asian markets fell by up to 2.5 per cent in the morning trade on Monday.