Wednesday, March 29 2006 12:44 Hrs (IST) - World Time -

Mumbai: The Rupee today (Mar 29, 2006) came under renewed pressure on customary month-end demand amid a resurgent dollar overseas after the US Federal Reserve raised in key interest rates by 25 basis points with sentiments turning negative due to flaring oil prices.

The nervous trade at the Interbank Foreign Exchange (forex) market here this morning, the Rupee tumbled to 44.70/71 per dollar, sharply lower from Tuesday's close of 44.63/65 per dollar.

The Rupee opened distinctly weak of 44.72/73 per dollar.

Usual month-end consideration, surging crude oil prices and a rebounding dollar overseas exerted renewed pressure on the Rupee early today with the outlook uncertain on fears of a slow-down in FII inflows, a forex dealer said.

The US dollar rallied smartly against major global rivals mainly Euro following the overnight hike in US Federal Fund rate by 25 basis point to 4.75 per cent.

World crude oil prices shot up to US$ 65.98 a barrel on reports of lower US inventories.

With the hike in US fund rates and a signal from the Fed of more interest rates hike fuelled concern over a slow-down in FII inflows because of the wide interest rate differential.

Meanwhile, Foreign Institutional Investors (FIIs) infused a whopping US$ 124.10 million into equity markets on March 27.

In Cross Currency trade, the Euro was quoted at Rs 53.67/69, Pound Sterling at Rs 77.95/98 and Japenese Yen (100) at Rs 37.94/96.