Rupee weakens on lower Asian markets

Rupee weakens on lower Asian markets

Mumbai: The Indian rupee weakened in early trade on Tuesday as higher oil prices and weak Asian stocks raised worries of more foreign fund outflows from the local share market.

At 9:15 am the partially convertible rupee was at Rs45.52/54 per dollar, weaker from its previous close of Rs45.45/46. Last week the rupee fell to Rs46.99, its weakest since April 2006.

Oil was trading close to $109 a barrel. India imports about 70% of its crude and oil refiners are the biggest buyers of dollars in the local currency market.

Asian stocks slid on Tuesday on skepticism about how Washington’s $700 billion bailout plan can restore confidence in the US financial system, when the economy may be in recession, boosting gold and government debt.