Rupee Retreats From One-Week High on Europe Political Concerns
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India’s rupee fell from a one-week high as investors sought the perceived safety of the dollar on concern Europe’s debt crisis will worsen.
The Dollar Index, which tracks the greenback against major trading partners, touched a six-month high yesterday as early results suggested Italy’s election would yield a hung parliament, leading to another vote. The rupee’s losses will be capped as Finance Minister Palaniappan Chidambaram is likely to announce steps to rein in the fiscal and current-account deficits when he presents the annual budget to Parliament on Feb. 28, according to Federal Bank Ltd.