Rupee turns weak against US dollar

Rupee turns weak against US dollar

Mumbai: The rupee today turned weak to 39.38/39 against the US dollar in late morning deals due to weak Asian stock markets amid the interest rate cut announced by the US Federal Reserve on Tuesday night.

In quite trade at the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply lower at 39.41/42 per dollar from yesterday’s close of 39.35/36 per dollar.

Traders attributed steep initial fall in the rupee to sluggish Asian stock indices. The BSE benchmark Sensex was also down by over 245 points in early trade.

But partial recovery in the equity market helped the rupee to recover some lost ground and was quoted at 39.38/39 a dollar in late morning deals, still down by three paise over previous close.

Dealers were disappointed over the quarter point rate cut by US Federal Reserve, which was already expected, last night instead of 50 basis points, a banker said.

There was some dollar demand from oil refiners as global crude oil crossed $90 a barrel in New York yesterday.

Expectation of the intervention by the central bank also capped the rupee’s surge.