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Rupee eases as oil gains

Rupee eases as oil gains
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First Published: Thu, Jan 01 2009. 05 55 PM IST
Updated: Thu, Jan 01 2009. 05 55 PM IST
Mumbai: The rupee ended marginally lower on Thursday, as a jump in global oil prices raised dollar demand from crude refiners, but gains in local shares helped the local unit recover from one-week lows.
The partially convertible rupee ended at Rs48.76/78 per dollar, off an intraday trough of Rs48.845, its lowest since 25 December, according to Reuters data, but slightly weaker than Wednesday’s close of Rs48.70/72.
Oil, India’s biggest import, traded above $43 a barrel, having risen from 2008’s low of $32.40, touched on 19 December, on concerns of tightening global fuel supplies.
But gains in local equities improved sentiment for the rupee, helping it recover some ground towards the close of trade.
Shares kicked off the new year on a positive note, rising 2.7% on Thursday.
Foreign funds withdrew $13.3 billion from the stock market in 2008, a key factor in the rupee’s steepest yearly fall since a balance of payments crisis in the early 1990s.
India’s current account deficit swelled to a record $12.54 billion in the September quarter and analysts warned on Wednesday it could balloon further as the world economy slows, putting pressure on the rupee.
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First Published: Thu, Jan 01 2009. 05 55 PM IST
More Topics: Markets | India | Rupee | Currency | Oil |