Rupee weakens further by 15p in early trade

Rupee weakens further by 15p in early trade
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First Published: Fri, Jul 25 2008. 12 10 PM IST
Updated: Fri, Jul 25 2008. 12 10 PM IST
By PTI
Mumbai: The rupee has come under fresh pressure and stands weakened by another 15 paise to 42.28/29 against the US currency in morning trade on sustained dollar buying from oil companies amid sluggish local stocks.
In one-way activity at the Interbank Foreign Exchange (forex) market, the local currency resumed lower at 42.22/24 a dollar from its previous close of 42.13/14 a dollar and later dropped to 42.28/29 a dollar in late morning deals.
Forex dealers said importers stepped up dollar purchases with global crude oil prices hovering around $126 a barrel level in Asian trade this morning. They said there was lot of dollar buying from oil refiners and the rupee is expected to move further downward during the day.
Usually oil companies buy dollars in the last week of the month for their monthly import payments. India imports nearly 70% of its oil requirements.
Sensex was down 353 points in early trade while Asian indices were trading lower by about 1- 3%. Weakness in equity markets could affect the prospects of capital inflows into the country.
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First Published: Fri, Jul 25 2008. 12 10 PM IST