Agencies
 
New Delhi, Sep 10: The Indian rupee on Wednesday breached the crucial 45-level against the US currency for the first time in 22 months following sustained appreciation in dollar against major currencies in overseas markets.

The rupee ended at 45.14/15 per dollar, from the previous close of 44.84/85, as losses in the stock market raised worries of more foreign fund outflows.

In quiet trade at the Interbank Foreign Exchange (forex) market this morning, the local currency resumed cheaper by nine paise at 44.92/94 a dollar from its last close of 44.83/84 a dollar and later drifted to 45.02/03 a dollar in late morning deals.

Besides, marketmen believe the uncertainty in the forex market is likely to continue for the coming days and the decline of rupee would obviously impact the imports of the country, with the main one being crude oil.

The breaching of the crucial 45-level by the rupee against the US dollar for the first time in 22-month may augur well for exports in the country, but is likely to fuel inflation further, which is hovering over 12 per cent at present, experts feel.

"The huge demand for dollar and mismatch in supply have led to the continuous pressure on rupee, while foreign inflows have also slowed down this year. The depreciation could be a cause of concern for the inflation levels in the country as well although it may help the exporters," Punjab National Bank General Manager Arun Kaul said.

Arun Kejriwal, director of Kejriwal Research and Investment Services (KRIS) said that "the uncertainty in the forex market is likely to continue for the coming days. However, the fast decline in the rupee against the dollar is a cause of concern as it will impact the imports in the country."