Rupee hits fresh six month low, ends at 40.52/53 per USD

Mumbai, Mar 7 (UNI) The Rupee today hit a fresh six month low against the US Dollar and closed at 40.52/53, depreciating by 22 paise from its previous close of 40.30/31 on extremely weak global cues.

After resuming the day on a weak note against the greenback at 40.40/42, the local unit futher weakened to hit a fresh six month low at 40.64 per dollar, tracking the downfall in the Indian equity market in the mid-afternoon trade. However, it recovered by about ten paise in late trade on some fresh supply of dollars in the interbank foreign exchage (Forex) market in late trade, dealers said.

Rupee had hit the level of 40.65 per dollar on Sepetember 10' 2007 and today again skid near to the level on account of high global crude oil prices, which yesterday hit a record high of USD 105.40 per barrel. Backhome, weak note in equity market and soaring inflation, which hit a 10 month's high at 5.02 per cent, also pulled down the local currency against the dollar today, Development Credit Bank Associate Vice President Treasury and Financial Insititutions Group, Navin Raghuvanshi said.

''Though the US currency weakened against other global currency like Euro and Yen, it has improved against rupee due to soaring crude oil prices as it was seen during the day that oil-based banks bought dollars for their custodians at its lower rate,'' Mr Raghuvanshi added.

Meanwhile, the six month premium was quoted higher at 0.31 (-0.10) per cent and annualised premium closed at 0.45 (0.22) per cent. The Reserve Bank of India fixed the reference rate for the US dollar at Rs 40.53, up by 24 paise as compared to the previous Rs 40.29.

The rupee today closed weaker at 62.38 (61.17) against the Euro. It ended at 81.47/48 (79.63) per unit against the Pound Sterling and closed at 39.66/67 (38.80) per hundred units against the Japanese Yen.

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