In brisk trade at the Interbank Foreign Exchange market, the local currency resumed weak at 40.67/68 a dollar from its last close of 40.60/61 a dollar and gradually moved downwards to near 41-level during the day.
The rupee had seen this level last on September 4, 2007 when it closed at 40.9750/9850.
The rupee premiums on forward dollar ended further lower on sustained receivings by exporters.
The benchmark six-month forward dollar premiums payable in October ended at 31-1/2 - 33-1/2 paise, down from 33-35 paise on Monday and the far-forward maturing in April eased to 57-59 paise from 60-1/2 - 62-1/2 paise previously.
| Exchange Rates at 16.40 hrs. (IST) | ||||
| Currency Name | Sell | Buy | ||
| TT | Bill | TT | Bill | |
| Dollar | 40.97 (+0.3) | 41.00 (+0.3) | 40.88 (+0.3) | 40.87 (+0.3) |
| Euro | 63.53 (+0.7) | 63.58 (+0.7) | 63.40 (+0.69) | 63.38 (+0.69) |
| 100 Yen | 39.08 (+0.45) | 39.11 (+0.45) | 38.99 (+0.46) | 38.98 (+0.46) |
Forex dealers said US dollar commanded sustained demand from banks and corporates. The sky-high oil prices caused fears of a widening trade deficit, exerting pressure on state-owned oil companies as well as a slowdown in portfolio inflows, they added.
The rupee has weakened to near 41-level belying all market expectations. Barely a week back, the market was abuzz with speculations that rupee may gain in view of tight supply after the Reserve Bank hiked the CRR to 8.25 per cent, which is expected to drain the system by nearly Rs 27,000 crore in the liquidity system.
Dealers said there was consistent dollar buying from oil companies amid fears that the Indian unit might weaken further due to the widening deficit and continued slowdown in FII inflows, key driver of the local currency.
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