Mumbai: Indian rupee today breached the historic 50-mark against a US dollar in intra-day on sustained demand for the greenback amid the American currency's sharp rise against its major rivals in overseas markets.

The domestic currency later closed the day a little lower at 49.95/96 after suspected intervention by the Reserve Bank in the inter-bank foreign exchange (forex) market. Meanwhile, the benchmark Sensex also posted its second biggest single-day fall of nearly 1,100 points on relentless capital outflows.

The Indian unit plunged to the record low in the opening trade and just ahead of the announcement of RBI mid-term review of monetary policy.

The rupee, however, recovered after the announcement of the monetary policy review and traded below 50-mark. Forex dealers said RBI is believed to have intervened to support the Indian currency.

They said all major currencies depreciated against dollar in overseas markets in the midst of a global gloom, with Asian and European equity markets registering massive looses.

Foreign banks stepped up their dollar purchases as the greenback hit new heights in the world markets.

Dealers said rupee is likely to gain strength in the days to come as RBI is widely expected to intervene to mitigate the rupee s losses against the greenback.

The local unit has consistently been under tremendous pressure as FIIs pulled out from equity on day-to-day basis in the light of spreading global financial market crisis. Experts said dollar s appreciation the world over is surprising, considering the financial mess US is in.

In brisk activity at forex market here, the domestic currency fluctuated widely between 50.15 and 49.85.
Source : PTI