Rupee down on local shares, dollar buys for Iran oil dues

Rupee down on local shares, dollar buys for Iran oil dues

Mumbai: The rupee weakened a tad more in afternoon trade on Tuesday as local equities slipped further and dollar buying for Iran oil payment persisted.

Euro’s slide along side weakness in Asian currencies also weighed on the rupee, traders said.

At 1:22pm, the partially convertible rupee was 44.2600/2625 per dollar, weaker from its 44.07/08 previous close.

So far in trade, the unit has moved in 44.18-44.2950 band, and is expected to stay in range of 44.12 to 44.30, traders said.

The euro was $1.4190 from $1.4431 when local forex trade closed on Monday, while the index of the dollar against six major currencies was up 0.34% to 74.519 points from 73.618 points.

But, a sharp weakness in rupee is unlikely given the robust outlook on inflows, traders said.

In July, foreign funds invested $1.7 billion in Indian equities and over $500 million in local debt securities, data from the capital markets regulator Securities and Exchange Board of India showed.

The local share index fell more than 1% on Tuesday as fresh worries about the health of the global economy added to domestic concerns over rising rates and slowing growth.