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Rupee to drop on weak regionals, stocks
The rupee is expected to open shakily on Tuesday, weighed down by lower
Asian stock markets and weaker regional currencies but likely central bank
intervention may trim sharp falls.

Asian stocks fell and government bonds rose in a sobering realisation the US
takeover of Fannie Mae and Freddie Mac had addressed some risks stemming
from the financial crisis but has not solved it.

The partially convertible rupee ended at 44.60/61 per dollar on Monday, 0.1
percent stronger than 44.645/655 at close on Friday when it fell to a low of
44.75, a level it last traded on Dec 21, 2006, according to Reuters data.

Foreign funds have been net sellers of $7.6 billion worth of Indian shares
so far in 2008, a key factor in the rupee's 11.7 percent fall against the
dollar. It rose more than 12 percent in 2007, when foreign funds invested a
record $17.4 billion.


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