Indian rupee seen down on euro zone worries

Mon Apr 16, 2012 8:13am IST

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MUMBAI, April 16 (Reuters) - The Indian rupee is likely to
open lower on Monday as outlook on capital inflows turned cloudy
again after Spanish yields surged, reigniting worries over
Europe's debt crisis and hurting risk appetite.	
    * Inflation data due around noon (0630 GMT) would be watched
for its impact on shares. A Reuters poll showed analysts expect
March inflation to ease slightly to 6.70 percent.
 	
    * The data comes a day before the central bank policy
review, when it is widely expected to cut rates by 25 basis
points to 8.25 percent. It would be the first rate reduction in
three years. 	
    * The rupee is seen opening around 51.50 to the
dollar and could weaken to as much as 51.65, putting the market
on guard for possible central bank intervention. It closed at
51.305 on Friday.	
    * At 0231 GMT, the MSCI index of Asian stocks ex-Japan
 was down 0.7 percent, and the Nifty India stock
futures index in Singapore was 0.5 percent lower.	
	
 (Reporting by Aditya Phatak; Editing by Ranjit Gangadharan)
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