MUMBAI: The Indian rupee slid to its lowest in 8 weeks on Monday as weakness in domestic shares as well as the euro dampened sentiment for the local unit.
Traders were also waiting for inflation data due around 0630 GMT for cues on the central bank's stance at its June 16 policy review.
India's wholesale price index likely rose 8.43 percent in April from a year earlier, slower than March's 8.98 percent increase, due to base effect, a Reuters poll showed on Thursday.
At 10:24 a.m. (0454 GMT), the partially convertible rupee was at 45.0450/0475 after falling to 45.0950 -- its weakest since March. 21. It had ended at 44.85/86 per dollar on Friday.
Traders expected it to stay in the range of 44.90-45.20 per dollar intra-day.
"A higher inflation (figure) will adversely impact the rupee today as equity markets are expected to soften. It is already jittery after the petrol price hike," said Ashtosh Raina, head of forex trading at HDFC Bank in Mumbai.
Indian state-run oil firms raised petrol prices by about 8.6 percent, or 5 rupees a litre, from Sunday, company officials said. A record hike that will fuel inflation in Asia's third-largest economy.
Indian shares dropped 0.5 percent in early trade on Monday, taking cues from weak Asian peers.
The index of the dollar against six major currencies was up 0.1 percent and almost all Asian currencies were weaker. See for a snapshot.
The euro slid to a six-week low against the dollar and a two-month trough against the Japanese yen on Monday and is seen testing pivotal support areas after IMF chief Dominique Strauss-Kahn was charged with sexual assault on the weekend, increasing uncertainty on aid for Greece and other indebted euro zone countries.
The one-month onshore forward premium was at 25.75 points versus 28 points last close. The three-month was at 76.75 points against 77.75 points and the one-year was at 285 points from 292.75 points.
The one-month offshore non-deliverable forward contracts were quoted at 45.23, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all at 45.1300, with total volume at $1.7 billion.
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