Markets

Indian rupee hits 5-month low at open; RBI watched

Published August 8, 2014 Updated August 8, 2014 05:47am

MUMBAI: The Indian rupee dropped to its weakest level in five months on Friday morning, weighed down by geo-political tensions around the globe with concerns about the continuation of foreign fund inflows into local debt and equities also hurting sentiment.

By 9:07 a.m. (0337 GMT), the partially convertible rupee was at 61.60/61, after hitting 61.70, its lowest since March 5.

Traders said they expect the central bank to step in and sell dollars to limit volatility if there is further downward pressure on the local currency during the session.

Asian shares tumbled as investors sought out safe-haven assets on growing fears that conflicts in Ukraine and the Middle East could sap global growth, extending losses after U.S. President Obama said he had authorized air strikes in Iraq.