Rupee weakens by five paise

Mumbai, May 20: The Rupee today weakened by about five paise to close at 42.60/61 against the US Dollar from its previous close of 42.55/56 on worries over high crude oil prices.

The partially convertible Indian rupee slipped to touch an intraday low at 42.74 against the greenback on increasing demand of dollars from oil exporting company companies in the currency market, dealers said.

Dealers further maintained that the local unit showed a tendency to move towards a fresh 13-month low as the nationalised and foreign banks were seen selling dollars to feed the demand by oil exporting firms as the global crude oil prices had hit record high of over USD 127 per barrel.

Meanwhile, annual inflation had hit 7.83 per cent on May 3 and the provisional rate for March 8 was revised up to 7.78 percent from 5.92 percent, has also raised concern in the market which would further dampen the fund inflow, dealers added.

Reserve Bank of India today fixed the reference rate for US Dollar at at Rs 42.67, three paise higher from previous day's level of Rs 42.64 per USD. The six-month premium was quoted higher at 1.55 (1.23) per cent and annualised premium closed at 1.20 (1.04) per cent.

Rupee ended the day on a weak note at 66.75 (65.92) per unit against Euro. It closed at 83.83 (82.85) per unit against the Pound Sterling and ended at 41.04 (40.63) per hundred units against the Japanese Yen.

UNI