Mumbai: Inflation fears due to relentless rise in world crude oil prices to a new peak and weakness in global equity markets weighed on the rupee and it fell by another 12 paise to 42.72/73 against the greenback in late morning trade.
In quite trade at the Interbank Foreign Exchange (Forex) market, the local currency resumed sharply lower at 42.72/74 a dollar from overnight close of 42.60/61 and remained stable at lower levels in late morning deals.
Market participants were concerned over the rising global crude oil prices to a record high over $129 a barrel as India imports nearly 70% of its oil requirements and that might affect Asia’s one of the fastest growing economy.
Asian indices were also affected by the growing inflation worries and were slipped on the back of sharp declines on Wall Street.
Meanwhile, the Sensex was down by 138 points at 10.30 am on 21 May. Month-end dollar demand from oil refiners also partly weighed on the rupee sentiment.