Rupee further slips to 42.78/79 against USD

Mumbai, Jun 4: The Rupee today slipped to 42.78/79 against the dollar, depreciating about 18 paise from its previous close of 42.60/61 following a sharp fall in the local equity market. The partially convertible Indian rupee weakened further over concerns of growing risk aversion, tracking a sharp decline in the stock market as the fuel price hike heightened the expectation of sharp rise in inflation rate to a level of atleast 13-months high, dealers said.

The government has agreed to raise petrol, diesel and LPG prices by Rs 5 per litre, Rs 3 per litre and Rs 50 per cylinder respectively in a move to curb losses at its state-owned refiners but it might stoke inflation, dealers opined. Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 42.63 per unit, ten paise higher from the previous day's level of Rs 42.53 per USD.

The six-month premium was quoted higher at 2.10 (1.61) per cent and annualised premium closed at 1.71 (1.41) per cent.

Rupee ended the day weak at 66.03 (66.46) per unit against Euro. It closed at 83.51 (84.07) per unit against the Pound Sterling and ended firm at 40.73 (40.78) per hundred units against the Japanese Yen.

UNI