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Indian Rupee Drops To New Multi-month Lows Against Dollar

Monday, the Indian rupee reached its lowest level in more than two and half months against the US dollar on month-end dollar demand from importers.

The dollar also advanced in offshore trading as concerns about eurozone debt impasse increased safe-haven demands. Eurozone finance ministers' meet today on the payment of long-awaited aid to debt-stricken Greece.

However, election victories of four separatist parties in Spain's Catalonia region over the weekend, added more economic and political pain to Spain and clouding Madrid's push for fiscal austerity.

Indian shares rose modestly despite concerns over the fiscal deficit amid the logjam in Parliament over the issue of FDI in retail. The benchmark BSE Sensex ended the session up 30 points or 0.16 percent at 18,537, while the broader Nifty index rose by 9 points or 0.17 percent to 5,636.

The rupee reached 55.8755 against the US dollar, its weakest level since September 6. The rupee is fast approaching the 56.0 level after a gap of nearly 3-months with 56.05 seen as the next likely resistance level and 55.40 seen as the probable support.

by RTTNews Staff Writer

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