Rupee hits new low on war fears

INDIA - The rupee hit a new closing low against the dollar as war fears persisted and the Indian and Pakistani armies continued to trade fire across the border.

After holding out for two days, partly due to suspected central bank intervention, the rupee was brought down on Thursday by dollar demand from nervous importers. Traders said the central bank did not intervene actively on Thursday.

The rupee ended at 49.04/05 per dollar, easing below its previous closing low of 49.02/03 hit on May 15.