WSJ:Indian Rupee Tumbles to Lowest in Over 10 Weeks
By KHUSHITA VASANT
MUMBAI—The Indian rupee weakened to its lowest level against the dollar in more than 10 weeks Friday, hurt by the political opposition's efforts to thwart the government's plan to push through key policies.
The winter session of India's Parliament, which saw a noisy start Thursday, was adjourned for a second consecutive day after opposition lawmakers disrupted proceedings, protesting against the government's recent decision to ease foreign direct investment rules in the retail sector.
The dollar was most recently trading at 55.46 rupees after touching 55.49 rupees earlier in the day, a level not seen since Sept. 11. The greenback was quoted at 55.21 rupees late Thursday.
The rupee's weakness comes despite strength in the euro, which it closely tracks. Oil companies' dollar bids and weakness in local stocks also contributed to the local currency's decline.
The trading head at a foreign bank said investors are unwilling to bet on the rupee despite the government's intentions to set its finances in order through stake sales in state-run companies. Recent data showing sputtering factory output growth in September and a wider trade deficit in October add to the bearish factors for the rupee.