The Indian currency rupee continued to fall against US$ on the Interbank Foreign market on Friday on sustained dollar demand from foreign banks following steep fall in equity markets amidst poor supply of dollars.

The rupee resumed higher at 48.70/71 per dollar as against the Thursday’s closing level of 48.83/84 in the early trade due to fresh selling of dollars from banks. However, it retracted downwards at the fag-end of the day at Rs 48.88/89, showing a loss of five paise, on renewed buying from banks on behalf of oil companies due to rise in crude oil prices.

The rupee moved in a range of Rs 48.56 and Rs 48.96. The Indian currency fell by 79 paise in last three days. The US dollar short-term funding costs eased for the fourth day in Asia on Friday, although stress remained in several local markets due to heightened counter party and term risks despite the cash pumped in by governments. Asian markets were mixed as worries about a slowing global economy kept investors on sidelines.

“Oil prices rose over $2 in Asia in a technical bounce on Friday, after falling below $70 for the first time in more than a year, on worries over falling demand,” analysts said.

The BSE benchmark index fell below the crucial 10,000-mark for the first time in two years to end at 9,975.35, showing a loss of 606.14 points or 5.73%. AGENCIES