Indian rupee weakens on strong dollar, stocks key
The Indian rupee weakens further in afternoon trade, as the dollar's strength against other currencies depressed sentiment for the local unit.Updated: Jun 13, 2008 15:47 IST
The Indian rupee weakened further in afternoon trade on Friday, as the dollar's strength against other currencies depressed sentiment for the local unit, while a wobbly stock market raised concerns of more fund outflows.
* At 3.15 pm, the partially convertible rupee was at 42.92/93 per dollar, off a low of 42.95 hit earlier in the day, and weaker than Thursday's close of 42.835/845. It had hit a 13-month low of 43.21 on May 22.
* The dollar rose against the euro and the yen on Friday, and was on track for its best week in over three years against a basket of currencies as investors focussed on a weekend meeting of G8 finance ministers.
* Oil, India's biggest import, was trading above $135 a barrel, near record highs of $139.12 hit last week, which could widen India's trade deficit.
* India's main share index, swung between losses and gains, and traders were worried rising interest rates could hurt consumer spending and slow down earnings growth for companies.
* India's annual inflation in the 12 months to May 31 rose 8.75 per cent, its highest since February 10, 2001, and above a median forecast of 8.28 per cent in a Reuters poll.