MUMBAI, Jan 2: The rupee dipped on Monday, dragged down by concerns that the latest spike in international oil prices could further expand widening trade and current account deficits.

The rupee was at 45.095/105 per dollar, 0.14 per cent weaker than Friday’s 11-week closing peak of 45.03/04.

With oil having risen sharply, the concern about the current account deficit should start seeping in, a chief dealer at a foreign bank said.

Also, because of thin trade we should see a slightly choppy market with a 45.00 to 45.15 range. But there will be no cash (dollar) demand and the market will take its cues from stocks.

Oil is India’s biggest import and the latest jump in U.S. light oil futures to above $61 per barrel on worries about U.S. fuel stocks and expectations of an Opec output cut in January stoked worries about a widening trade shortfall.

Official data on Friday showed India’s current account posted a $7.66 billion shortfall in the July-September quarter compared with a $5.3 billion shortfall in April-June, largely on account of a $16.21 billion merchandise trade deficit.—Reuters