BackRupee slips on weak stocks, Reliance Power
Rupee slips on weak stocks, Reliance Power
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Mumbai: The rupee eased on Monday as traders watched a jittery stock market, shaky debut by Reliance Power Ltd and declines in some Asian indices, dealers said.
At 9:55 a.m., the partially convertible rupee was at 39.63/64 per dollar, a touch lower than the previous close of 39.625/635, and near a two-week low of 39.685 hit on Feb. 6.
“There’s nervousness surrounding the stock market, and it’s playing on the mind of dealers," said the chief dealer with a foreign bank.
India’s benchmark share index fell nearly 2% in early deals, declining for the fourth consecutive session.
Reliance Power, which made India’s biggest-ever initial public offering of $3 billion last month, fell more than 13% after debuting at its IPO price of Rs450.
Oil and precious metals rose on supply concerns on Monday in thin holiday trade in Asia, while the few stock markets that were open, such as South Korea and Australia, unravelled on fear the credit crunch would spread further.
Asian currencies fell slightly on Monday, in step with regional stocks, after a weekend Group of Seven meeting offered no quick fix for the turbulence in credit markets.
The euro rose on Monday after the head of the European Central Bank suggested easing monetary policy was not on the bank’s agenda because inflationary pressures persisted in the euro zone.
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