Monday, August 8 2005 14:23 Hrs (IST) - World Time -

Mumbai: The Rupee declined sharply against the US currency early today (Aug 8, 2005) on renewed dollar demand from oil corporates following a surge in global oil prices to record peaks amid a relatively firm dollar overseas.

In nervous trade at the Interbank Foreign Exchange market in Mumbai this morning, the Rupee opened on a weak note at Rs 43.50/51 per dollar and later slipped to Rs 43.5450/5550, sharply lower from last Friday's close of Rs 43.48/49 per dollar.

Renewed dollar demand from large offshore oil companies on the back of flaring crude oil prices exerted considerable pressure on the Rupee, despite steady foreign fund inflows into the equity market, a Forex dealer said.

Crude oil prices soared to all time highs of 62.69 dollars a barrel before settling at US$ 62.44 in early Asian trade today (Aug 8, 2005) due to concerns over US fuel supplies.

Turning to cross currency trade, the Euro was quoted at Rs 53.66/68, Pound Sterling at Rs 77.19/21 and the Japanese Yen (100) Rs 38.66/68.