Rupee seen slipping on outflow concerns

MUMBAI |
Fri Nov 25, 2011 8:06am IST

MUMBAI (Reuters) – The rupee is expected to weaken on Friday, a day after it snapped an eight-session losing streak, as global risk-off sentiment will likely prompt investors to pull out of equities.

* Asian shares and the euro were hovering near seven-week lows as European officials failed to soothe investor fears that the euro zone’s debt crisis could trigger a credit crunch if funding costs run out of control.

* At 0220 GMT, the MSCI index of Asian shares ex-Japan was down 0.8 percent, while the Nifty India stock futures traded in Singapore were 1.1 percent lower, suggesting a subdued start to the domestic market.

* The euro was trading at $1.3326, compared with $1.3383 at end of rupee trade on Thursday, while the index of the dollar against six major currencies was at 79.179 points versus 78.855 points.

* The rupee is expected to open around 52.20 per dollar, and move in a range of 52.00 to 52.40 initially, traders said. The unit had closed 0.6 percent stronger on Thursday at 52.065/075.

* The currency has lost more than 14 percent this year, the most in Asia, and had hit an all-time low of 52.73 on Tuesday.

(Reporting by Swati Bhat; Editing by Ranjit Gangadharan)

Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/nddNEYPdBXg/idINIndia-60722820111125

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