Thursday, July 6 2006 11:54 Hrs (IST) - World Time -

Mumbai: Rupee lost further ground against the US currency on renewed dollar demand from oil corporates, following a flare up in global crude oil prices amid a resurgent dollar overseas in slightly nervous early trade at the Interbank Foreign Exchange (forex) market here.

The domestic unit was quoted at Rs 46.14/15 per dollar in late morning deals, sharply lower from Wednesday's close of 46.08/09 per dollar.

Rupee opened weak at 46.15/18 per dollar, following a dollar rebound overseas, mainly against the Euro.

Possible hectic dollar demand from oil corporates and importers amid a resurgent dollar overseas exerted further pressure on the rupee early today despite steady FII inflows into equity markets, a forex dealer said.

Oil prices surged to record peaks of US$ 75.4 a barrel before settling at US$ 74.90 in early Asian trade today due to strong US demand, tension over Iran's Nuclear stand-off and reports that North Korea tested missiles.

Foreign Institutional Investors (FIIs) infused US$ 47.30 million into equity market on July 4 after injecting US$ 23.4 million on June 30.

Turning to Cross Currency trade, the Euro was quoted at Rs 58.79/81, Pound Sterling at Rs 84.75/77 and Japanese Yen (100) at Rs 39.96/99.