Rupee weakens against US dollar

Rupee weakens against US dollar

Mumbai: The rupee continued to weaken against the US currency during morning trade on 27 November 2007, slipping by about nine points on month-end dollar demand amid consistent FII pull out and weakness in the equity markets.

In quiet trade at the Interbank Foreign Exchange (forex) market, the local currency resumed lower at 39.86/88 a dollar against yesterday’s close of 39.79/80 a dollar and later eased to 39.88/89 in late morning deals.

Sustained dollar buying by oil corporates weighed on the rupee sentiment, forex dealers said.

The rupee also remained under pressure because of capital outflows in the current month as well as a fresh setback in equity market, they added.

Global equity markets tumbled on renewed credit concerns. The BSE benchmark Sensex was trading 138 points down during late morning trade.