The rupee fell to its lowest close in three weeks on Thursday, shaken by a 3 percent drop in local stocks and dollar buying by Indian refiners eyeing a spurt in oil prices on fears Hurricane Rita could hit US supplies. The rupee lost one-tenth of a percent to end at 43.92/93 per dollar, its weakest close since 44.025/030 on September 1.
Indian shares fell on news that tax officials had raided some brokers, with the benchmark BSE index posting its lowest close in more than a week as authorities stepped up surveillance to head off a possible speculative bubble. The index had leapt about 21 percent in three months.
"Oil and the stocks scare were the main factors," a dealer at a state-run bank said.