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Mumbai, May 8 The fall and fall of the rupee over the last 10 days seems to be seeing no reversal as the Indian currency shed another 40 paise on Thursday, tumbling to a new low against the dollar.

The rupee opened at 41.53/55 on Wednesday against its previous close at 41.35/36. It then plummeted to touch an intra-day low of 41.80, and finally ended the day at 41.75/76.

Forex dealers said oil refiners were seen buying dollars as the price of global crude continued to bubble at over $123 per barrel.

The fall in the domestic stock market was also a dampener for the rupee, raising apprehensions of lower dollar inflows.

Market participants said banks were also actively buying dollars to take advantage of the arbitrage opportunity in the offshore non-deliverable forward market.

“If the rupee’s movement continues to be linked with the price of oil, then the domestic currency could depreciate to 42.50. The exporters have already sold their dollars and the importers are not adequately covered,” said Mr K Harihar, Head- Treasury, Development Credit Bank.

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