Rupee depreciates by 15 paise against dollar during the week

{image-inflation+rbi_25052008.jpg news.oneindia.in}Mumbai, May 25: The Rupee weakened by 15 paise to 42.70/71 against US Dollar, due to record high global crude oil prices in the week ended May 23. The partially convertible Indian currency, however, past over 43.00 level to touch a 13-months low of 43.21, against the greenback during the week, but came off due to reported intervention by the Reserve Bank of India, dealers said.

The local unit sharply fell in the initial two sessions of the week, on sustained demand of dollars from importers, as crude oil price. Later, the public sector banks sold dollars on behalf of central bank, which helped the rupee to come off from its lower level, a senior dealer with a leading private bank said.

During the week, rupee traded in wide range band between 42.55 to 43.21 per dollar and finally its sharp fall was prevented by the suspected intervention of the central bank, the dealer added.

Dealers also maintained that the local unit showed a tendency to remain at the level of 13-months low, as the global crude oil prices had a hit record high of over USD 135 per barrel.

Meanwhile, whole sale price index based annual inflation was quoted at 7.82 per cent on May 10, as compared to previous 7.83 per cent, government data released on May 23, showed. Indian bourses also sharply dropped by about 800 points in the week tracking negative global sentiments.

UNI