At 11: 20 AM (IST), the rupee was at 45.25 per dollar after hitting 45.43, its lowest since Dec. 20 and little weaker than 45.33/34 at close on Wednesday. The rupee declined to a three-week low against the US dollar on Thursday after the greenback strengthened in the overseas markets on the back of persistently upbeat economic reports out of the US. The partially-convertible Indian currency extended its recent losses as local stocks continued to fall and inflows from the FIIs have been rather erratic of late. At 11: 20 AM (IST), the rupee was at 45.25 per dollar after hitting 45.43, its lowest since Dec. 20 and little weaker than 45.33/34 at close on Wednesday. The rupee had fallen by 34 paise to close at two-week low of 45.33/34 against the dollar in yesterday’s session. The dollar’s gains against other Asian currencies along with demand for the US currency from importers put pressure on the rupee. The dollar traded near a two-week high against the yen today as signs of improvement in the crucial jobs market added to evidence that the recovery in the world’s largest economy is gaining traction. The greenback strengthened against most major counterparts. The Australian dollar reached a two-week low amid concerns that flooding will hamper the South Pacific nation’s economy. South Korea’s won rose toward a seven-week high, as exporters forecast increased sales and investment. The Dollar Index, which tracks the US currency against six major rivals, rose 1.1% to 80.282 yesterday. The daily advance was the biggest since Dec. 15. It was little changed at 80.244 today. Meanwhile, oil prices traded above Us$90 a barrel in New York amid a growing view that steady improvement in the US will boost fuel demand in the world’s largest energy consumer. Crude oil futures gave up some of the earlier gains as the dollar strengthened, limiting the appeal of commodities. Crude climbed 1% yesterday after reports showed that US service industries expanded and companies added workers in December.

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