Rupee closes at six-week low of 60.16

The rupee weakened to its lowest level in more than a month on Monday as surging crude oil prices threatened to push up domestic inflation pressure and aggravate the current account deficit.

The rise in wholesale price inflation further hurt the rupee and pulled it down intraday to 60.23, a level last seen on May 6. The rupee ended at 60.15 versus its previous close of 59.76 on Friday.

Brent crude rose towards $113 a barrel on Monday after a strong rally last week as Sunni insurgents advanced in Iraq intensifying concerns over a potential disruption to oil exports from the second-largest OPEC producer.

India imports close to 80 per cent of its oil requirement. The under-recoveries of public sector oil companies for the financial year 2014-15 are projected to be Rs 91,665 crore.

"As long as the Iraq crisis continues, this should be the trend for the time being. And, if RBI doesn't intervene and the Iraq crisis continues, it will definitely remain below 60 to the dollar," said Ashtosh Raina, head of forex trading, HDFC Bank.

In association with Mail Today Bureau