May 09, 2008	Friday	Jamadi-ul-Awwal 3, 1429

KARACHI, May 8: The rupee fell 0.95 per cent against the US dollar on Thursday to a new record low and it has now depreciated 8.9 per cent since the beginning of the year.

Dealers said the rupee was under pressure from increased demand for dollars from importers, particularly for purchases of oil, with crude prices scaling record highs.

The rupee closed at 67.08/20 to the dollar compared with the previous closing low of 66.45/55 set on Wednesday.

“We are not seeing any inflows and at the same time international oil prices keep rising,” said a bank trader.

Dealers said the rupee could weaken to as low as 70 to the dollar in coming days, and a fall in foreign exchange reserves had left little room for central bank intervention to prop it up.—Reuters