Mumbai: The rupee eased slightly in midday trade on Tuesday, as traders eyed near-record oil prices and the see-sawing local stock market for cues.
At 2:11 pm, the partially convertible rupee was at 40.51/52 per dollar, weaker than Monday’s close of 40.48/49 but off an early low of 40.62.
India’s benchmark share index see-sawed on Tuesday, opening 0.9% lower but then rising as much as 1%, though the market lacked momentum as investors remained vulnerable to negative cues.
Oil was trading above $107 a barrel on Tuesday, near Monday’s record high of $108.21. India imports about 70% of its oil, and rising crude prices will increase the trade deficit and may put further pressure on the rupee.