Continuing its weakness for the fourth straight day, the Indian rupee today depreciated by another 28 paise to a one-week low against the greenback in early trade on increased dollar demand from refiners and a widening trade deficit.
At the Interbank Foreign Exchange (Forex) market, the domestic currency traded lower at 49.04 against the US currency, down 27 paise over the previous close of 48.76/78 amid absence of any cues from global markets due to new year holidays.
Yesterday, the rupee moved in the range of 48.46 to 48.85 before finishing 7 paise lower at 48.76/78.
Dealers said heavy dollar demand from refiners and importers and widening trade deficit mainly put pressure on the Indian currency.
India's exports fell 9.9% in November 2008, posting a negative growth for the second month running under the impact of a slowdown in major global markets.
Exports dropped to $11.5 billion in November this fiscal, from $12.7 billion a year ago while imports grew 6.1% to $21.5 billion, leaving a monthly trade deficit of $10 billion.