Rupee loses 41 paise against dollar

The rupee on Wednesday declined further and lost 41 paise to 51.10 against the U.S. dollar in the late morning trade due to month-end demand for the American currency from importers amid strong global cues.

The rupee resumed lower at 50.86/87 per dollar at the Interbank Foreign Exchange (Forex) market as against the last closing level of 50.69/70 per dollar and dropped further to 51.10 per dollar before quoting at 51.01/02 per dollar at 1030 hrs.

The domestic currency hovered in a range of 50.80-51.10 against the dollar during the morning deals.

Month-end dollar demand from oil refiners coupled with higher dollar in overseas market mainly affected the rupee value against the dollar, forex dealers said.

In New York, the dollar edged higher versus most major rivals yesterday, finding support following a dip in March consumer confidence a day after Federal Reserve Chairman Ben Bernanke implied the central bank was in no hurry to exit its ultra-easy monetary policy.

Meanwhile, crude oil dipped in Asian trade over concerns that a possible spike in U.S. crude inventories signalled declining demand in the world’s biggest economy, analysts said. New York’s main contract, West Texas Intermediate crude for delivery in May, shed 45 cents to USD 106.88 per barrel.