Rupee softened on Monday as record high oil prices intensified concerns about a widening trade deficit and a weakening stock market raised worries that foreigners may withdraw some capital.
At 9:02 am the partially convertible rupee was at 41.65/66 per dollar, compared to 41.60/61 per dollar on Friday. It lost 2.3 per cent on the week.
Oil has hit record highs above $126 a barrel. India imports 70 percent of its oil and refiners are among the biggest buyers of dollars in the local market.
The trade deficit had widened 35.5 per cent to $80.4 billion in the fiscal year ended March, largely due to soaring oil prices.
The Indian stock market fell 4.9 per cent last week. So far in 2008, foreigners have been net sellers of $2.9 billion of stocks.
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