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Indian rupee eases on outflow concerns August 16, 2008

Posted by malibusac in Currency News.
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“Asian cues are not very good and that should keep the undertone of the rupee weak for the day,” said L.V. Prasad, head of currency trading at Mumbai-based IndusInd Bank.

One-month offshore non-deliverable forward contract PNDF were at 43.37/47, weaker than the onshore rate.

Indian shares fell 3 percent in opening deals, after concerns about the fallout from a credit crisis roiled world markets, with Reliance Industries (RELI.BO: Quote, Profile, Research) and ICICI Bank (ICBK.BO: Quote, Profile, Research) leading the losses. [.BO].

Asian stocks fell as investor confidence waned in the region’s financial sector, which faces high inflation, a stricter lending environment and massive volatility from overseas markets. See: [ID:nSP255308].

Foreign funds have sold a net $6.9 billion of Indian shares so far this year, and have contributed to a more than 8 percent drop in the rupee’s value against the dollar.

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