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Rupee weakens as oil prices inch up
May, 31st 2008

The rupee eased in early trade on Thursday, after global oil prices climbed back over $130 a barrel and traders awaited cues from the stock market.

At 9:20 am, the partially convertible rupee traded at 42.75/76 a dollar, weaker than the previous close of 42.73/74. It hit a 13-month low of 43.21 last week.

Oil, India's biggest import, traded above $130 a barrel on Thursday, after hitting a low near $126 in the previous session. Refiners are the biggest buyers of dollars, with demand tending to peak towards the end of each month.

Dealers will keep an eye on share prices, which influence capital inflows and are a key support for the rupee.

 
 
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