Rupee to start lower on weak euro

The rupee is seen opening lower on Tuesday, weighed by a weak euro as fresh doubts over resolution of euro zone crisis drove investors away from risky assets and sent Asian shares down.

Traders said the rupee is likely to open at 48.80 per dollar and move in a 48.65-49.00 range during the day. It had ended 0.1% stronger at 48.69/70 at previous close.

The dollar pulled back slightly from a three-month peak against the yen on Tuesday as the impact of Japan's massive intervention faded a touch, while the euro came under renewed pressure amid growing doubts over a plan to contain Europe's debt crisis.

The euro was at USD 1.3856, compared with USD 1.4001 at the end of local trade on Monday, while the index of the dollar against six major currencies was at 76.479 points versus 75.982 points.

At 0226 GMT, the MSCI index of Asian stocks ex-Japan was down 0.83% and the Nifty India stock futures traded in Singapore were 0.44% lower, suggesting a weak start to local shares.

Renewed worries about a slow progress in resolving the euro zone's debt crisis and a firmer dollar dampened investor appetite for risk, sending Asian shares and commodities lower on Tuesday while keeping pressure on the euro.