Rupee may slip on weak stocks, risk reversal

MUMBAI: The rupee may slip to its lowest in more than a month on Tuesday on negative cues from Asian equity markets that are expected to heighten concerns risk-averse investors will sell local shares and withdraw funds.

The rupee ended at 39.800/805 per dollar on Monday, its weakest since Oct. 23, down from the previous finish of 39.71/72. It had hit 39.16 earlier this month, its highest since March 1998.

The rupee weakened despite a 2.1 percent rise in local stocks, with some foreign funds selling it to repatriate profits before the end of the year, dealers said.

Foreigners have sold more than $1.2 billion worth of Indian shares so far this month, after buying $4.3 billion in October, trimming their net buying to about $16 billion so far in 2007.