The rupee on May 22 fell by 12 paise to 42.95/96 a US dollar, recovering somewhat from below 43 level it reached during the day, on fears that erupted after crude oil rose to a record. Global crude oil prices spiralled to a new record high of above $135 a barrel, raising worries of further upward pressure on inflation.
In a two-way trade at the Interbank Foreign Exchange (Forex), the local currency resumed sharply lower at 43.06/07 and dipped further to a low of 43.20, the level not seen since first week of April, 2007. Month-end dollar demand from oil refiners and importers also weighed on the rupee sentiment.
But, it recovered later to end at 42.95/96 a dollar, still lower from overnight closing level of 42.83/84. Dealers attributed late recovery in the rupee to some dollar selling by exporters, who took the opportunity to book profits at higher level.
In a two-way trade at the Interbank Foreign Exchange (Forex), the local currency resumed sharply lower at 43.06/07 and dipped further to a low of 43.20, the level not seen since first week of April, 2007. Month-end dollar demand from oil refiners and importers also weighed on the rupee sentiment.
But, it recovered later to end at 42.95/96 a dollar, still lower from overnight closing level of 42.83/84. Dealers attributed late recovery in the rupee to some dollar selling by exporters, who took the opportunity to book profits at higher level.
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