Rupee weakens by 15 paise against US dollar

MUMBAI: Rupee continued its slide against the US dollar on Wednesday and was quoted about 15 paise lower during morning trade on fresh dollar demand as well as a sharp fall in equity markets.

Stronger yen in overseas markets also weighed on the rupee sentiment.

In volatile trade at the Interbank Foreign Exchange (forex) market, the local currency resumed sharply lower at 41.32/33 per dollar from overnight close of 41.1650/1725 but later recovered partially to 41.25/27 a dollar in later morning deals.

Oil refiners were consistent buyers in dollar to meet their month-end import payments, forex dealers said.

Reports indicating to a sharp decline in the US Consumer confidence and in home prices combined with more downgrade ratings of financial firms due to the credit market mess also had a negative impact on the forex market, they added.

The benchmark Sensex on Wednesday tumbled by 327.08 points to 14,592.11 before recovering partially in late morning trade. It was quoted down by 167 points at 10.30 am.