Mumbai: The rupee dropped to its lowest in nearly two weeks on Tuesday as losses in regional shares fuelled concerns foreigners would withdraw funds from local shares with lower Asian units also weighing.
Traders would also be watching a rate decision by the Reserve Bank at 11:15 a.m.
Analysts are almost evenly split over whether the Reserve Bank will cut its key lending rate at the policy review to support growth.
At 9:05 a.m. the partially convertible rupee was at 50.55/56 per dollar, off an early low of 50.62, its weakest since April 8 and below its Monday's close of 50.33/34.
Asian stocks fell and government bonds rose on Tuesday, after a 41 per cent quarterly increase in bad loans at Bank of America renewed fears of deteriorating credit, halting a rebound in risk taking.
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