MUMBAI: The Indian rupee is expected to weaken on Friday as fears mounted the euro zone may not be able to announce a concrete plan to tackle its debt crisis at a summit later in the day, pushing most regional equities and the euro lower.
European Union leaders looked set to adopt a new system of fiscal discipline, but sentiment worsened after the European Central Bank dashed hopes that it would serve as lender of last resort and as Germany rejected a long-term goal of issuing common euro zone bonds.
At 0244 GMT, the MSCI's index of Asia Pacific shares outside Japan was down 1.5 percent, while the Nifty India futures traded in Singapore were 1.2 percent lower, suggesting a shaky outlook for the local market.
The index of the dollar against six major currencies was at 78.762 points, compared with 78.463 points at the end of the rupee trade on Thursday. The euro was at $1.3353 from $1.3388 previously.
Traders said the rupee should open around 51.90 per dollar and move in a range of 51.85 to 52.00, and all eyes would be on the central bank for any intervention.
It had pared most early losses on Thursday and ended 0.07 percent weaker at 51.75/76 after state-run banks sold dollars.
Comments
Comments are closed for this article.