Rupee seen down on outflow fears, weak euro

The rupee should hover near 32-month lows on Wednesday as foreign fund outflow worries heighten on fears that Europe's debt crisis was spreading to its core euro zone members like France.

A weak euro will also weigh on the rupee, traders said.

 The partially convertible rupee could open around 50.75 per dollar and weaken towards 50.90, they said. It had closed down 0.7% on Tuesday at 50.66/67, after hitting 50.76 during trade, a level last seen on March 31, 2009.

At 0242 GMT, the MSCI index of Asian shares ex-Japan was down 1.28% and the Nifty India stock futures traded in Singapore were 0.45% lower, suggesting a weak start to the local market.

 The euro was being slowly eroded in Asia on Wednesday, having suffered two straight days of declines as the euro zone debt crisis threatened to engulf top-rated members such as France.