Rupee falls by 40 paise; Ends at 41.11/13 per dollar

Mumbai, June 8 (UNI) Rupee skidded to a three-weak low today to close at 41.11/13 per dollar, down by nearly 40 paise on visible capital outflows and strenghtening of US Dollar.

Brokers said the Rupee may weaken further in the ensuing sessions as market started witnessing marginal outflows in past two-three days that may sustain in days ahead also.

''Two reasons that have acted behind Rupee's downward swing is remarkable capital outflows and the gradual strenghtening of US dollar. Market was very much volatile and Choppy throughout the entire Day.'', Indrajith Sen Guptha, Chief Operating Officer, Canara Bank told UNI.

Rupee opened the Day's trade at 40.84/86 and later went up to an intra-day low of 41.25 before closing the trade at 41.11 per dollar.

The Rupee had closed at 40.70/71 yesterday.

A weakened Rupee has brought back cheers to Industrialists, especially those in Export sector, who had tasted bitter in foreign trade in past weeks owing to the strenghtening of Domestic Unit.

''That Rupee has come down to comfortable levels is a factor which adds thrust to Exporters especially those in Textile Industry. Rupee should derive value based on its merit, for being stable among the Asian Currencies. However, I can't comment on Rupee's future course.'', said Niraj Bajaj, President, Indian Merchant's Chamber.

Rupee's downward swing was partly attributed to the dip in Sensex which fell by 122.37 points today to close at 14,063.81.

The Central Bank's intervention on Rupee's gains in the past sessions has also contributed significantly to push the local unit down, said traders. Reserve Bank fixed the reference rate at Rs 40.98 per US dollar toay down by thiryfive paise from 40.63 yesterday.

UNI