RTTN: Indian Rupee Slumps To 13-day Low Against Dollar
Wednesday, the Indian rupee plunged to a 13-day low against the US dollar as losses in local shares increased prospects of more capital outflows.
Following weak global cues, Indian stocks opened lower today. Wipro shares dropped 5% at open after it reported an 18% rise in quarterly profit, on expected lines, but cut outlook for the March quarter.
Bombay Stock Exchange's 30-share Sensex fell 182 points to 8886.56. National Stock Exchange's benchmark Nifty lost 53.10 points or 2 per cent to 2743.50 from Tuesday's close.
Indian shares dropped 2.45% yesterday on concerns fresh worries about the world economy could force investors to cut exposure to riskier assets, while a grim outlook for quarterly earnings added to the gloom.
Foreigners have dumped shares worth about $660 million this month, after having sold more than $13 billion in 2008.
Foreign fund flows are a key driver of the rupee, with the currency shedding 19 percent last year on the back of foreign selling in local shares.
The rupee slipped to a 13-day low of 49.3650 per dollar today and this may be compared to yesterday's New York session close of 49.05. If the Indian currency weakens further, it is likely to target the 49.4750 level.
