Rupee Weakens Sharply And Starts October On A Negative Note

The rupee weakened sharpy against the dollar on Monday as oil prices surged.

The rupee weakened sharpy against the dollar on Monday as oil prices surged driven by expectations oil producers may cut production which would likely push up inflation further and lead to more aggressive central banks.

Bloomberg  quoted the rupee last changing hands at 81.7188 per dollar on the first trading day of October, after opening at 81.5887, compared to its Friday's close of 81.3488.

PTI reported that the domestic currency fell 38 paise to 81.78 against the US dollar in early trade.

That comes after the rupee posted significant gains on Friday after the Reserve Bank of India hiked interest rates to a three-year high and reaffirmed its intention to do whatever it takes to tame inflation and stabilise the currency from wild gyrations.