Rupee Slides

The rupee was another casualty of political uncertainties, rising global crude oil prices and the surge of the US dollar abroad. Breaching the crucial 45-dollar barrier, the rupee slumped to a seven-week closing low of 45.04/06 per dollar on Monday amidst hectic dollar demand and acute cash dollar shortage.

Nervousness gripped the forex market after wary operators scrambled to cover short dollar positions, pulling down the rupee value by nearly 39 paise from last Friday8217;s close of 44.66/67.

Local dealers were worried over the rise of the dollar which hit a seven-month high against the yen on speculation that the US Federal Reserve will raise interest rates next month to curb inflation in an economy creating jobs at the fastest pace since 2000. 8212;ENS