RTTN: Indian Rupee Plunges To New Multi-week Low Against Dollar
(RTTNews) - In early deals on Friday, the Indian rupee fell to a new multi-week low as Dubai's debt problems hit stocks and raised worries that risk aversion may push foreign investors to cut exposure to local equities.
Dubai said on Wednesday it wanted creditors of state-owned Dubai World and its property subsidiary Nakheel, to agree to a debt standstill in a first step towards restructuring.
Dubai World, the conglomerate that spearheaded the emirate's breakneck growth, had some $59 billion in liabilities as of August.
India's benchmark stock index fell more than 2 percent early as the Dubai debt concerns triggered worries about the global financial system and rattled markets across Europe and Asia.
The U.S. market was closed yesterday on Thanksgiving Day holiday.
The Bombay Stock Exchange's Sensitive Index, or Sensex, is currently down nearly 400 points or 2.37% at 16,465 and the S&P CNX Nifty is drifting lower by 121 points or 2.42% to 4,885.
The rupee plunged to 46.8550 per dollar, its lowest level since November 09. If the Indian currency weakens further, it may target the 47.4 level. At yesterday's close, the dollar-rupee pair was quoted at 46.1050.
After hitting a 9-day high of 45.83 against the dollar yesterday, the rupee has lost more than 2%.
