Rupee to drop on oil payments, lower Asian shares

MUMBAI |
Tue Aug 2, 2011 8:46am IST

MUMBAI (Reuters) – The rupee should weaken on Tuesday, weighed down by lower regional equities and dollar demand from oil refiners to settle dues to Tehran.

* The partially convertible rupee is expected to open around 44.10 per dollar dollar and move in 44.02-44.15 band, traders said. It had closed 0.3 percent stronger at 44.07/08 on Monday.

* Asian shares fell on Tuesday on concerns about a downgrade of the U.S. credit rating and economic worries after sluggish data, while the yen gave up some gains on jitters over the possibility of intervention by Bank of Japan.

* Asian currencies were marginally weak versus the dollar. For a snapshot see:

* The safe-haven Swiss franc counted its gains on Tuesday on worries about the global economy even as the United States looked to have averted a debt default after the House of Representatives approved an 11th hour deal to raise the U.S. borrowing limit.

* At 0302 GMT, the MSCI index of Asian stocks ex-Japan was down 1.06 percent while the Nifty India futures traded in Singapore were 0.72 percent lower, suggesting a negative start to the domestic market.

(Reporting by Suvashree Dey Choudhury; Editing by Ranjit Gangadharan)

Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/80NxUjMPa14/idINIndia-58571620110802

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