Rupee slides on weak euro, share drop

MUMBAI |
Fri Dec 9, 2011 9:23am IST

MUMBAI (Reuters) – The rupee fell 1 percent on Friday, dragged by the dip in euro and local equities, on growing concerns that European leaders may not be able to cobble up a far-reaching plan at summit later in the day to tackle the region’s festering debt crisis.

* At 9:16 a.m., the partially convertible rupee was at 52.29/30 per dollar, sharply weaker from Thursday’s closing of 51.75/76. The unit had touched a record low of 52.73 rupees on November 22.

* The euro nursed hefty losses in Asia on Friday ahead of an all-important EU summit, after the European Central Bank poured cold water on hopes it will buy up more bonds of debt-laden euro zone states, a step some deem essential to containing the debt crisis.

* European Union leaders looked set to adopt a new system of fiscal discipline, but sentiment worsened after the European Central Bank dashed hopes that it would serve as lender of last resort and as Germany rejected a long-term goal of issuing common euro zone bonds.

* The index of the dollar against six major currencies was at 78.938 points, compared with 78.463 points at the end of the rupee trade on Thursday. The euro was at $1.3318 from $1.3388 previously.

* India’s main share index was down 2 percent in early trade on Friday after diving 2.3 percent in the previous session.

(Reporting by Aditya Phatak; Editing by Subhadip Sircar)

Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/B1FXl3Fj4Hw/markets-india-rupee-idINDEE7B803320111209

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