Published on Tue, Feb 14, 2012 at 08:22 | Source : Reuters
Updated at Tue, Feb 14, 2012 at 08:36
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Rupee seen down on risk aversion worry
The rupee is expected to start lower on Tuesday as investor appetite for risky assets took a beating after rating agency Moody's warned it may cut its triple-A ratings for France, Britain and Austria.
The rupee is expected to start lower on Tuesday as investor appetite for risky assets took a beating after rating agency Moody's warned it may cut its triple-A ratings for France, Britain and Austria.
* At 0228 GMT, the MSCI index of Asian stocks ex-Japan was down 0.72 percent, while the Nifty India stock futures in Singapore were 0.24 percent lower, suggesting a weak start for local shares.
* Doubts over Athen's ability to pursue austerity reforms, with social unrest intensifying, also weighed on sentiment for shares and the euro.
* Traders expect the rupee to open around 49.35 to the dollar and move between 49.00 and 49.50, after closing at 49.19/20 on Monday.
* The central bank could step in to support the rupee if it slides sharply, traders said. The Reserve Bank of India sold more than $9 billion in the spot and forwards market in December, its biggest intervention in nearly three-and-half years.
* The market would watch January inflation data due around 0630 GMT for direction, traders said.
