Wednesday, February 6, 2008

Rupee Slips On IPO Outflows, Waning Risk Appetite

MUMBAI: The rupee slips on Wednesday as foreign funds pare holdings in local assets amid a bout of global risk aversion, with outflows from rebates of recent initial share offerings adding to the pressure on the local unit.

At 9:15 a.m., the partially convertible rupee at 39.64/65 per dollar, a touch stronger than an early low of 39.6750, its weakest since Jan. 22. It ended at 39.555/565 on Tuesday.

Asian stocks slumped on Wednesday, sending investors fleeing to less risky bonds, after unexpectedly weak service sector data in the United States and Europe fueled fears of a recession.

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