Rupee slips on equities, importer demand

Rupee slips on equities, importer demand

Mumbai: The rupee was weak in afternoon trades on Tuesday as local equities remained in the negative zone and the euro retreated following Moody’s decision to review France’s triple-A credit rating.

The rupee also remained under selling pressure due to persistent dollar demand from domestic oil refiners, traders said.

At 1:52pm, the partially convertible rupee was 49.16/17 per dollar, 0.4% weaker from Monday’s close of 48.945/955. It had touched an intraday low of 49.22 earlier.

The euro was at $1.3718, below $1.3786 at the end of rupee trade on Monday when the single currency had hit a one-month high of $1.3914.

The index of the dollar against six major currencies was at 77.258 points, above 76.998 on Monday.

The local benchmark share index was down nearly 1.8%.

Oil is India’s biggest import item and domestic oil companies are the largest purchasers of the greenback in local currency market.