The rupee opened lower and touched a five-week low in opening deals after a World Bank missive that stated the world’s gross domestic product (GDP) expected to shrink by 2.9%, nearly double compared with 1.5% expected earlier. Global trade is also expected to take a hit of 9.7% in 2009, first decline in more than 27 years.
The domestic unit opened at 48.83 and touched 48.90, the lowest since mid-May, and was seen trading at 48.85/86 per dollar in early deals. The rupee had closed at 48.62/63 on Monday.
The decline in the rupee was also weighed down by Asian equity markets, which were trading in the red.