Worst weekly fall for rupee in 10 yrs

The Indian rupee had its biggest weekly loss in a decade as crude oil touched a near all-time high of US$125.98 per barrel, boosting demand for dollars from oil refiners. However, the local currency bounced back on the last trading day of the week, spurred by suspected dollar sales by exporters. The rupee's 1% rally on Friday helped it pare this week's decline to 2.3%. It ended the week at 41.5950 as against last Friday's close of 40.6750, the biggest weekly decline since May 1998. During the week, the local currency touched a low of 41.8950 and a high of 40.53. The rupee is the second-worst performer this year among Asia's 11 most-traded currencies. A weak stock market also had an adverse impact on the local currency. The benchmark BSE Sensex fell 4.9% this week, ending a four-week advance. A rebound in the US dollar from a record low against the euro and signs the Federal Reserve may be finished with cutting rates prompted some investors to shun emerging-market assets.