RTTN:Indian Rupee Off 8-week Low Against US Dollar
The Indian rupee that fell to an 8-week low of 55.14 against the US dollar at the beginning of Monday's domestic trading erased some of its losses in late trading. The rupee recaptured almost 0.6 percent to reach as high as 54.7950 against the dollar at the end of the session.
The rupee traded lower in the morning as the U.S. budget cuts kicked in and data out of the euro zone and China underlined concerns over the global economic outlook dampened investor sentiment on emerging market assets.
The BSE Sensex hit a low of 18,760 early in the session before paring losses to end down 41 points or 0.21 percent at 18,878. The broader Nifty index fell by 21 points or 0.37 percent to 5,698.
Although the rupee managed to stay off its key 55.35/40 support line, chances are high of penetrating this area in the near-term as the recent run of dollar-ride over the euro could continue. Key levels to watch beyond this support zone are 55.70/90 and 56.0.
