Rupee drops 20 paise at 42.8750/8850 against USD

Mumbai, June 27 (UNI) The Rupee today came off the three-week high to close about 20 paise weaker at 42.8750/8850 against the US Dollar, as compared to its previous close of 42.67/68 per dollar following the sharp fall in the stock market.

Dealers attributed the sharp slide of the Indian currency against the greenback to downtrend in the local stock market combined with global oil price rise, hit a fresh record high at USD 141 per barrel.

Snapping the two straight days gaining spree, the local unit opened weaker at 42.84/85 per dollar following the heavy losses in the Indian bourses and thereafter traded in a range band between 42.77 and 42.88 per dollar before ending the session on a weak note, dealers observed.

Meanwhile, Sensex plunged nearly 620 points hiting the year's lowest level, while Nifty tumbled 179 points on negative global cues combined with worries over further rise in interest rates as the inflation has hit a fresh 13-year high at 11.42 per cent.

RBI today fixed the reference rate for US Dollar at Rs 42.79 per unit, up by six paise, from previous close of 42.73 per USD.

Meanwhile, the six-month and annualised premium was quoted slightly higher at 4.49 (4.35) per cent and 3.81 (3.72) per cent, respectively.

However, Rupee ended the day weaker at 67.37 (67.05) per unit against Euro. It closed at 85.04 (84.67) per unit against the Pound Sterling and ended at 40.27 (39.60) per hundred units against the Japanese Yen.

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