Date:21/02/2008 URL: http://www.thehindu.com/2008/02/21/stories/2008022155891900.htm

Business

Rupee crosses 40-mark against $

MUMBAI: Continuing its weakness for the fourth day on Wednesday, the Indian rupee tumbled by 29 paise against the dollar to breach the 40-mark for the first time in five months with the shortage of U.S. currency getting accentuated by the global crude prices which hit fresh records. In brisk activity at the inter-bank foreign exchange market, the domestic currency touched a low of 40.24 before closing at 40.19/20. It resumed weak at 39.95/97 against its previous close of 39.90/91.

The Indian rupee had been ruling below the 40-level since September 20 last year when it closed at 39.88/89.

Meanwhile, global crude oil prices crossed $100 a barrel level to $100.01 on Tuesday for the first time. Forex dealers said the exchange market continued to witness a scramble for dollar coverings by oil refiners to meet their import requirements with the global crude oil prices hitting record highs. There was an increased demand for the greenback from oil importers as well as banks in the face of inadequate dollar supplies as a result of poor capital inflow, they added. — PTI