Mumbai: Nervousness gripped the interbank foreign exchange (forex) market in Mumbai on August 25 afternoon, sending the rupee tumbling down on a fresh wave of panic dollar selling, following reports of a series of blasts that hit the city.

As news trickled in of several explosions rocking the city, the rupee initially plunged by over ten paise to Rs 45.97/99 from opening levels of Rs 45.8450/8600, before recovering partly to Rs 45.91/94 around 14.00 hrs (IST), a dealer said, adding "but, cautious nervousness still prevails at the market".

The rupee, under the usual month-end pressures was now stabilising from the temporary knew-jerk reaction and was allowing market forces of demand/supply to govern its direction, dealers said.

Meanwhile, at the bullion markets, trading was suspended temporarily, dealers said.

PTI