Mumbai: Heavy fall in the rupee value after global oil prices surged on supply concerns over the unrest in Iraq led the rupee to log its straight third week fall in an otherwise dull trading week. Sustained dollar demand from importers and some weakness in local equities also weighed on the rupee, a forex dealer said. Crude prices logged a nine-month high after militants closed in on Iraq's capital Baghdad, fuelling fears over supplies from the crude producer.
US benchmark, West Texas Intermediate, advanced 73 cents to USD 107.26 after surging USD 2.13 in New York to reach its highest level since September. At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed the week better at 59.10 a dollar from last weekend's close of 59.17 and immediately touched a high of 58.98 on firm local equities.
Later, it moved in a narrow range till Thursday on alternate bouts of demand and supply before succumbing to heavy dollar demand from importers on Friday to register a low of 59.80. It finished the week at 59.77, revealing a fall of 60 paise, or 1.01 per cent. It has plunged by 125 paise, or 2.14 per cent. On Friday, it lost 52 paise - its biggest drop since January 24, 2014 - when it had dropped by 73 paise.
The benchmark S&P BSE Sensex closed down by 168.29 points, or 0.66 per cent, while FIIs injected USD 640.68 million in the first four days of the week, as per Sebi data. "Suspected intervention by the central bank was seen in the afternoon and demand for the greenback from importers put pressure on rupee," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
