Rupee falls as oil prices rise, stocks eyed

Enlarge Photo A man uses an electronic machine to check a currency note at a money exchange...

Mon, May 12 09:11 AM

MUMBAI (Reuters) - The rupee softened on Monday as record high oil prices intensified concerns about a widening trade deficit and a weakening stock market raised worries that foreigners may withdraw some capital.

* At 9:02 a.m. the partially convertible rupee was at 41.65/66 per dollar, compared to 41.60/61 per dollar on Friday. It lost 2.3 percent on the week.

* Oil has hit record highs above $126 a barrel. India imports 70 percent of its oil and refiners are among the biggest buyers of dollars in the local market.

* The trade deficit had widened 35.5 percent to $80.4 billion in the fiscal year ended March, largely due to soaring oil prices.

* The Indian stock market fell 4.9 percent last week. So far in 2008, foreigners have been net sellers of $2.9 billion of stocks.

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