Rupee at 8-week low on weak shares, euro

Rupee at 8-week low on weak shares, euro

Mumbai: The rupee slid to its lowest in more than 8 weeks on Monday as weakness in domestic shares as well as the euro dampened sentiment for the local unit.

At 2:15pm, the partially convertible rupee was at 45.0775/0825 after falling to 45.10 -- its weakest since 18 March. It had ended at 44.85/86 per dollar on Friday.

The euro hovered near a seven-week low against the dollar on Monday as investors sought clarity over how fresh talks on further aid for highly indebted euro zone countries might pan out.

Markets extended their drop after government data showed India’s wholesale price index (WPI) rose an annual 8.66% in April, mostly on higher fuel and food prices.

Indian state-run oil firms raised petrol prices by about 8.6%, or 5 a litre, from Sunday, company officials said. A record hike that will fuel inflation in Asia’s third-largest economy.

Traders expected the rupee to stay in the range of 44.90-45.20 per dollar intra-day.

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