MUMBAI: The Indian rupee is expected to drift lower on Wednesday, towards the record low hit in the previous session, as risk aversion prompt foreign investors to withdraw from the domestic sharemarket.
At 0240 GMT, the MSCI index of Asian shares ex-Japan was down 1.9 percent, while the Nifty India stock futures traded in Singapore were 1.1 percent lower, suggesting a weak open in the domestic market.
The rupee should open around 52.45 per dollar, and move in a range of 52.30 to 52.80 initially, traders said. It had closed 0.3 percent weaker on Tuesday at 52.2950/3050, after touching an all-time low of 52.73.
Market talk of the central bank starting a direct access window for oil firms to borrow dollars from them could slow the slide in the rupee, which has slumped more than 16 percent from its 2011 high in late July.
Asian shares were weighed down by mining and technology stocks after a downward revision of US growth data raised new concerns about the faltering global economy.
The index of the dollar against six major currencies was up 0.3 percent and is expected to add to the selling pressure on the rupee.
Comments
Comments are closed for this article.