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Forex »
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Rupee eases on weak Asian stocks
July, 10th 2008

Rupee weakened on Thursday, taking cues from weaker Asian stock markets but signs of political stability and likely RBI intervention may check sharp falls.

At 9:05 am, the partially convertible rupee was at 43.19/20 per dollar, weaker than 43.12/13 per dollar on Wednesday. It had hit a 15-month low of 43.50 last week.

Asian stocks slipped and government bond prices were higher on fears the credit crunch dogging Wall Street would inflict more damage on the region, already suffering from high inflation.

Oil was trading above $136.50 a barrel.

Shares rose 4.6 per cent to their highest close in two weeks on Wednesday as oil eased from record highs and the exit by communist allies of the federal coalition government is expected to speed reforms.

Foreign funds have sold a net $6.7 billion of Indian stocks so far in 2008, and the share index is down nearly a third.

 
 
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