India's rupee declined on Monday, in line with weakness in local stocks and other Asian currencies, while the euro fell to a two-week lows against the dollar and yen amid worries that the eurozone debt crisis may worsen.
At 3:40 pm (IST), the partially-convertible Indian currency was at 44.45 to the dollar after being as low as 44.4750. It opened at the day's high of 44.33 as against the previous close of 44.3275.
On Friday, the rupee had touched 44.2975, the strongest level since May 3.
The BSE Sensex closed at 18,721, down 136 points or 0.7% over the previous close. It had earlier been as low as 18,679 and as high as 18,843. It opened at 18,823.
The euro hit two-week lows versus the dollar and Swiss franc today in the run up to an emergency meeting of top European officials who are likely to discuss the region's deepening debt crisis.
The euro approached a record low against the Swiss franc after reports that the European Central Bank is seeking to expand the eurozone bailout fund to help Italy.
Another media report suggested that European leaders may accept a Greek default on some bonds.
The Dollar Index, which tracks the US currency against six major trading rivals, rose 0.6% to 75.647.
Higher-yielding currencies, including Australia’s dollar weakened on speculation that China will take further action to moderate economic growth after inflation in China touched a three-month-high.
Chinese consumer prices increased 6.4% in June from a year earlier, the National Bureau of Statistics (NBS) said on July 9, exceeding the 6.2% median estimate of economists.
Asian currencies dropped, led by Malaysia’s ringgit and the Philippine peso, as global investors dumped emerging market assets amid signs that the global economic recovery is losing traction.
