Mumbai: Amidst high volatility in morning trade, the rupee depreciated further by another four paise to 42.09/10 against the greenback dollar buying by oil refiners.

In active trade at the Interbank Foreign Exchange (forex) market, the local unit opened higher at 41.96/98 from yesterday's close of 42.05/06 and immediately touched a low of 42.22 a dollar following some dollar buying by oil refiners.

But further recovery in the Equity markets helped the rupee to recoup and quote at 42.09/10,still showing a fall of four paise over previous close.

The benchmark Sensex was up by another 163 points at 1030 hours this morning.

Weakness in dollar against the euro in New York yesterday also helped the rupee recovery.

Showing signs of slowdown in India economy after industrial output grew at its slowest in the last six years and spiralling upwards inflation, substantially higher than the tolerance level of the apex bank, also impacted negatively on the rupee sentiment.

Sustained withdrawal by foreign funds from equity markets in last couple of days also weighed on the rupee.
Source : PTI