Rupee remains weak on oil, shares

Rupee remains weak on oil, shares

Mumbai: The rupee remained weak in afternoon trades on Thursday as negative local shares and oil importers’ dollar demand weighed.

At 2:20pm, the partially convertible rupee was at 45.6000/6100 per dollar, after touching 45.66 -- a level last seen on 11 February -- and 0.4% weaker from Wednesday’s close of 45.4050/4150.

Traders said the rupee is unlikely to weaken beyond 45.70 as exporters are seen selling dollars around that level.

New Delhi is estimated to owe around $4 billion to Tehran for its oil imports and local oil firms have been aggressively buying dollars to make these payments.

Brent crude fell 0.2% on Thursday, staying below $111 a barrel as ongoing concerns over Europe’s debt crisis and a firmer dollar drew investors away from riskier assets like oil and into the safe havens of gold and the Swiss franc.

Markets were down more than 1% in tandem with weak Asian peers, dragged down by worries over the health of the global economy and on expectations domestic monetary policy will be tightened further despite risks to growth.

Most Asian currencies were also weaker against the dollar.

The euro was at $1.4427, compared with $1.4482 at end of local forex trade on Wednesday, while the index of the dollar against six major currencies was at 73.812 points, compared with 73.620 points previously.