Tuesday, April 18 2006 12:02 Hrs (IST) - World Time -

Mumbai: Rupee reacted down-ward on light dollar demand from oil corporates following a fresh surge in global crude oil prices in early trade ahead of the creditpolicy announcement later today (Apr 18, 2006). Despite a firm opening at Rs 45.07/09 per dollar, the Rupee declined to 45.1350/1450 per dollar in late morning deals, lower from the overnight finish of 45.12/14 per dollar.

Although the Rupee got early support from the retreating dollar overseas, the currency succumbed to renewed dollar demand from oil coporates following a flare-up in global crude oil prices, a forex dealer said.

Crude oil futures breached US$ 70 a barrel for the first time in 7-1/2 months, pushed higher by concerns over declining gasoline stock in the US, supply disruption in Nigeria and tension over Iran's nuclear programme.

Light, sweet crude, for may delivery touched US$ 70.70 a barrel in early asian trade today.

Reserve Bank of India (RBI) will unveil the slack season credit pollicy today.

Meanwhile, sentiments for Rupee turn further bearish due to a strong pulled out by foreign fund. Foreign Institutional Investors (FIIs) pulled out a massive USD 215.90 million from equity market on April 13 after an outflows of US$ 165.20 million on April 12, resulting in the BSE sensex falling by 352 points or 3.04 per cent.

In Cross Currency trade, the Euro was quoted at Rs 55.27/30, Pound Sterling at Rs 79.85/88 and Japenese Yen (100) at Rs 38.23/26.