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No more whoopee for Indian rupee

NEW DELHI, May 23, 2008 (AFP) - India's currency is feeling the pressure as world oil prices soar and foreign investors lose their "risk appetite" for emerging market assets amid global financial turmoil, analysts say.
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The Indian rupee -- which a few months ago was trading at 10-year highs -- now looks poised to post its worst monthly decline in a decade, analysts say.

"After having appreciated pretty much continuously against a soft US dollar since August 2006, the tide has turned for the rupee," said HSBC economist Robert Prior-Wandesforde.

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After touching a peak in early February of 39.4 to the dollar, the rupee has fallen by 9.

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5 percent, nearly wiping out last year's 12 percent gain. It traded against the greenback Thursday at 43.
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15.

Its slide has been greased by fears a 40 percent jump in oil prices this year and rises in other global commodity prices along with a tight monetary policy to tame inflation will depress growth and boost India's already soaring current account deficit, a measure of trade and investment flows.

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The problem of oil prices, which catapulted above 135 dollars a barrel for the first time on Thursday on fears about rampant demand exceeding supply, is particularly acute for In

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