Rupee slips on weak euro and shares

Rupee slips on weak euro and sharesDragged by losses in the euro, most Asian currencies, and local shares, the Indian Rupee (INR) weakened on Monday. This was after renewed fears of recession in the United States and sustained worries about the euro zone debt crisis prompted investors to sell riskier assets.

The partially convertible rupee was at 45.92/93 to a dollar, 0.3 percent weaker than its previous close of 45.79/80 at 11:39 a.m. (0609 GMT).


The index of the dollar against six major currencies was up at 74.876 points, from 74.506 at close of domestic currency markets on Friday, while the euro was at $1.4166, from its $1.4249 previous close.

Data last Friday showed U.S. employment growth ground to a halt in August, while the European debt crisis continued to fester with Greece and its international lenders now at odds over whether it has met conditions for a new aid tranche.

“Overall sentiment in the market is rupee negative and there is no flurry of activity as market holiday in the U.S. means that outflows will not take place,” said a senior foreign exchange dealer at a private-sector bank.

Financial markets in the United States will be closed on Monday for the Labor Day holiday.

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