Tuesday, July 1, 2008

Dealers High Crude Oil Prices Hurt The Rupee Sentiment - July 1,2008

The Indian rupee dropped by another 14 paise to nearly a 15-month low of 43.02/03 against the Greenback on fresh month-end dollar demand amid growing concerns over capital outflows and rising crude oil prices.In wide movements at the Interbank Foreign Exchange (forex) market, the local currency gradually moved downwards after resuming weak at 42.90/92 per dollar against its last close of 42.88/89 per dollar.

Dealers said high crude oil prices hurt the rupee sentiment as oil corporates rushed to buy dollar for their monthly import payments.Global oil prices hovered around its historical high and was traded above $142 per barrel in Asian trade. India imports nearly 70 per cent of its oil requirements and high crude prices will widen the country''s trade deficit, exerting pressure on the domestic unit.

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