Mumbai, May 14 (UNI) The Rupee today further skidded against the US Dollar and closed at 42.44/45, depreciating by 34 paise from its previous close of 42.10/11.
The partially convertible Indian rupee resumed the day on weak note against the greenback and touched a day's low at 42.67, weakest since mid-April 2007 on extended demands from the oil companies.
Banks also liquidated long dollar positions and cashed in on differentials between the local and overseas rates, dealers said.
Oil prices, hitting record highs close to USD 127 a barrel, also posed strong cause for the weakening rupee against the dollar in the currency market as India imports 70 percent of its oil and refiners are among the biggest buyers of dollars in the local market, dealers added.
The Indian currency went past 42 per dollar mark on Monday and continued to depreciate for third straight day. Further, dealers expect the local currency to depreciate at the level near 42.75 per dollar by the week-end.
Meanwhile, Reserve Bank of India today fixed the reference rate for US Dollar at Rs 42.33, higher by 17 paise from previous rate of Rs 42.16 per USD.
The six-month premium was quoted higher at 1.77 (1.70) per cent and annualised premium closed almost flat at 1.37 (1.38) per cent.
Rupee ended the day on weak note at 65.42 (64.95) per unit against Euro. It closed at 82.31 (81.92) per unit against the Pound Sterling and ended at 40.25 (40.34) per hundred units against the Japanese Yen.
UNI PP OBB VKG1908