Wednesday, June 28 2006 12:54 Hrs (IST) - World Time -

Mumbai: After an overnight brief rally, the rupee today (June 28, 2006) succumbed to customary month-end dollar demand and hit new 22-month lows of Rs 46.40/41 per dollar with the outlook uncertain due to firm crude oil prices and a slowdown in FIIs inflows.

In slightly nervous trade at the Interbank Foreign Exchange market here this morning, the rupee opened weak at Rs 46.37/39 per dollar and slipped to Rs 46.40/41, sharply lower from yesterday's close of Rs 46.35/36 per dollar.

"Usual month-end dollar demand amid strained supplies from FIIs coupled with a rebounding dollar overseas today exerted renewed pressure on the rupee with sentiment bearish because of firm global crude oil prices," dealer said.

Foreign Institutional Investors (FIIs) sold shares worth US$ 44.60 million in the equity markets on June 22 and another US$ 14.90 million on June 23. Fiis outflows amounted to US$5.90 million on June 26.

World crude oil prices were hovering around US$ 72.19 a barrel in early Asian trade today due to lingering supply concerns.

The rupee staged a brief rally yesterday, recovering four paise to close at Rs 46.35/36 per dollar.

Turning to cross currency trade, the Euro was quoted atRs 58.34/36, Pound Sterling at Rs 84.57/59 and a Japanese Yen (100) at Rs 39.91/93.