Rupee dips 2 months low; Egypt worries investors

Mumbai, Jan 31: The Indian rupee stayed near two-months low of 46.05 against the US dollar in early trade on the Interbank Foreign Exchange (IFE) on Monday, Jan 31. Amid month-end demand for the American currency from importers, meanwhile, violence in Egypt worried investors and dragged shares down as well as regional currencies.

At the IFE, the Indian rupee resumed lower at 45.97/98 per dollar as against last weekend's close of 45.76/77 per dollar. It later dropped further to 46.05 per dollar before quoting at 45.98/99 per dollar at 1030hours.

According to the experts the Indian rupee may probable track domestic shares and global market amidst negative cues.

During Monday's trade the Indian shares dipped up to 1 percent, due to the anti-government agitation in Egypt led to flight from risky assets.

World oil prices rose in Asian trade on fears that mounting political tensions in Egypt would disrupt supplies flowing through the Suez Canal, analysts said.

New York's main contract, light sweet crude for Mar delivery, was up 37cents to USD 89.71 percent barrel in early trade.

A choppy fall in the domestic equity market due to lower advices from other Asian courses adversely affected the rupee value against the dollar as well. The Indian benchmark Sensex was down by 236 points, or 1.28 per cent, at 1015 hours on Monday.

OneIndia News
(With inputs from PTI)