Rupee stays close to 32-month low; weak shares hurt

Rupee stays close to 32-month low; weak shares hurt

Mumbai: The rupee continued to trade close to its lowest level in nearly 32 months on Tuesday afternoon weighed by over 1% losses in domestic shares, a sharp fall in the euro and dollar demand from oil importers.

At 2:45 pm, the partially convertible rupee was at 50.67/68 per dollar, after hitting 50.71 in early trade, its weakest since 31 March 2009. It had closed down 0.3% at 50.285/295 on Monday.

Shares were trading down 1.2%, as worries about weak corporate earnings and high inflation weighed.

The euro fell on Tuesday, coming close to recent lows versus the dollar and hitting a one-month low against the yen as rises in Italian and Spanish bond yields underscored the difficulties facing policymakers in containing the region’s debt crisis.

Traders said dollar demand from oil importers was also weighed while exporters stayed out on hopes the rupee would depreciate further and provide better opportunities to sell.