Rupee opens lower at 44.23/25 vs USD

Mumbai, Feb 27 (UNI) The rupee today resumed a tad weaker at 44.23/25 against per US dollar as compared to the previous day's close of 44.20/22 on scattered dollar selling pressure by local operators.

There was scattered demand for dollars from oil refiners to meet routine payments, traders said.

The domestic unit was at 44.20/22 per dollar, barely changed from yesterday's close of 44.20/22, due to higher oil prices which weighed on the rupee. Oil is India's largest import and higher prices put pressure on the local currency.

Oil was trading at more than USD 61 per barrel after a bout of cold weather in the United States and forecasts for a further fall in US fuel inventories.

The dollar hit a two-month low against the euro and also weakened versus the yen on the back of tensions over Iran's nuclear plans. Expectations that the US Federal Reserve may cut rates this year also weighed on sentiment for the dollar.

Data released late yesterday showed foreign funds moved USD 967.1 million into Indian shares on Friday. They were mostly IPO-related flows.

Equity-related capital inflows for February have rung in at USD 1.95 billion so far.

Robust capital flows into Asia's fourth-largest economy have helped the rupee appreciate about 6.5 per cent since last June, brokers added.

UNI