The Indian rupee eased on Monday from a more than 5-1/2 month high struck in the previous session, as weakness in domestic shares dimmed the outlook for foreign fund inflows. Traders awaited industrial output data at 0530 GMT for further cues.
At 10:34 a.m., the partially convertible rupee was at 44.18/1900 per dollar, weaker than 44.07/08 at close on Friday when it hit 43.98 during trade, its highest since Oct. 15.
"There is some dollar short-covering and shares are also weaker," said Ashtosh Raina, head of foreign exchange trading at HDFC Bank in Mumbai.
After the European Central Bank (ECB) raised rates last week, investors had started buying the rupee on the back of gains in the euro.
The euro had risen to a 15-month peak versus the dollar on Friday after the ECB raised rates by 25 basis points on Thursday, its first increase since the 2008 financial crisis, and signaled it's ready to tighten further if needed.
