mumbai:: The rupee is fast approaching the 41-mark against a US dollar with the local currency today closing at six-and-a-half month low of 40.72/ 73 on distinctly weak trend in stock markets. However, the rupee premiums on forward dollar remained firm and rose further on sustained paying pressure from banks and corporates.

The rupee had appreciated to the 39 a dollar level in September last year following massive capital inflows. During the time, the Bombay Stock Exchange’s (BSE) benchmark 30-share Sensitive Index (Sensex) crossed the crucial 20,000 mark. However, on February 21 the local currency breached the 40 per dollar mark for the first time in five months.

The rupee opened sharply lower at 40.74/77 per dollar today from Friday’s close of 40.4350/ 4450 to the dollar, in line with the poor opening of the stock markets. The rupee ended the day at 40.72/ 73 a dollar. It moved in a range of 40.68 and 40.83 per dollar.

Forex dealers attributed the steep fall to heavy sell-off in Asian stock markets. Most Asian indices ended lower by an average of 1.6 per cent to 5.2 per cent today. There was some dollar buying by banks on behalf of their clients, mainly of them oil refiners, as global crude oil prices continued their upward march. All eyes are now set on tomorrow’s US Fed policy setting meeting, at which further interest rate cuts are almost certain.