Rupee plunges to 8-month low as oil weighs

Mumbai: The Indian rupee may weaken to a fresh 8-month low on Thursday as record oil prices underpin dollar demand from refiners, and heighten concerns about a widening trade deficit and rising inflation.

Oil, India’s biggest import, hit a record high just under $1243 a barrel. India imports 70% of its oil needs, and crude refiners are among its biggest buyers of dollars.

The partially convertible rupee (INR=IN) closed at 41.36/37 per dollar on Wednesday, off an intraday low of 41.41, which was its the weakest since 20August, according to Reuters data. It ended at 40.95/96 on Tuesday.

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