The rupee tumbled by 29 paise against the dollar to breach the 40-mark for the first time in five months with the shortage of US currency getting accentuated by the global crude prices which hit fresh records. The rupee touched a low of 40.24 before closing at 40.19/20 against the dollar. It resumed weak at 39.95/ 97 from its previous close of 39.90/ 91. The rupee had been ruling below the 40 level since September 20 last year, when it closed at 39.88/ 89 a dollar at the inter-bank foreign exchange market.The rupee fell as global crude oil prices crossed the 100-dollar a barrel level to 100.01 dollars on Tuesday for the first time. The rupee premiums on forward dollar ended higher on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premiums payable in July ended at 13-1 paise, up from 8-6 paise on Tuesday while far-forward maturing in January closed lower at 8-10 paise down from 18-20 paise previously.Forex dealers said that 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. They added that 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.“There was a dollar shortage in the market to begin with,” said a currency trader with a private bank. “Demand for dollars from oil companies was much stronger than supply today,” he said. “Once it hit 40.20, we saw some exporters selling, which caused the rupee to turn around,” the trader added. Analysts expect the rupee to come under pressure as foreign flows into stock markets slow down.
