The rupee weakened further against the US currency on Friday and ended at 41.09/10 on fresh dollar demand from banks as well as oil importers.
MUMBAI: The rupee weakened further against the US currency on Friday and ended at 41.09/10 on fresh dollar demand from banks as well as oil importers amid the uneasy political climate at the Centre.
The local currency found strong resistance at 41.10 mark during the session but breached this level toward the end and touched a high of 41.06, drawing support from a recovery in equity markets.
In active trade at the Interbank Foreign Exchange (forex) market, the rupee resumed weak at 41.07/09 per dollar and dropped further to 41.2050 during the day against yesterday's close of 41.04/06.
Investors seemed cautious at the moment and preferred to keep away from trading in the light of prevailing fluid political situation arising out of the Indo-US nuclear deal, forex dealers said.
The Left parties, which support the UPA government, want it to put the deal on hold. The CPI-M has, however, said that it does not want the "current crisis" to affect the Manmohan Singh government.
Banks and oil corporates, however, were seen taking up dollar positions at the current levels, they added.
Asian equity markets showed sluggish trend amid concerns over the recent problems in US credit and housing markets, which could push the world's largest economy into recession, commented a leading dealer.
Meanwhile, the benchmark Sensex today bounced back by 261 points or 1.84 per cent as Foreign Institutional Investors (FIIs) reportedly covered short positions after soft statements made by the Congress and the CPI(M) last evening.
FIIs have pulled out a massive USD 2 billion from equity markets so far this month.
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