Mumbai: The Rupee weakened against the US currency early today (Dec 15, 2004), on renewed Dollar demand from corporates and importers even as sentiments remained positive for a fresh rebound following the overnight rise in American interest rates.

In slightly nervous but cautious trade at the Interbank Foreign Exchange (Forex) market in Mumbai this morning, the Rupee is currently quoted at 44.15/17 per Dollar, lower from Tuesday's (Dec 14, 2004) finish of 44.11/12 per Dollar.

The Rupee opened distinctly weak at 44.24/27 per Dollar.

The US Federal Reserve raised interest rates by 25 basis point to 2.25 per cent, the fifth increase in the current calendar year.

Renewed Dollar demand from corporates and importers exerted pressure on the Rupee early today but rising foreign fund inflows into the booming stock market can insure a fresh rally later in the day, a Forex dealer said.

However, crude oil prices ruling over $ 42 a barrel may weigh on the Rupee value, he added.

The Rupee had appreciated by 64 paise in the last two sessions following a sharp rally fuel by robust trade and foreign fund inflows.

Turning to cross currency trades, the Euro was quoted at Rs 58.79/81, Pound Sterling at Rs 85.14/16 and the Japanese Yen (100) at Rs 42.00/02.