Rupee turns weak after promising start against dollar

MUMBAI: The rupee turned weak after resuming on a promising note and was quoted substantially lower against the US currency during morning trading on emergence of dollar demand from oil refiners.

In a fairly active trade at the Interbank Foreign Exchange (forex) market, the local currency resumed at Rs 40.85/87 per dollar from Friday's close of 40.8750/8850 perdollar but later turned weak and was quoted at 40.90/91 in late morning deals.

Attributing a better start to sustained rally on equity markets, forex dealers said some dollar demand from oil corporates weighed on the rupee sentiment in late morning trade.

The stock market barometer, Sensex, opened firm at 15,401.99 and later touched a high of 15,426.78, a rise of 108.18 points over Friday's close of 15,318.60.

Low inflation rate and a strong economic growth also helped the rupee initially, the dealers added.