India rupee may drop to 2-wk low on weak Asia peers

The Indian rupee is expected to start weaker on Wednesday and may head towards two-week lows in line with falls in regional peers and the euro on risk fears, but the dollar's broad weakness against other majors should limit the fall.

* The euro fell to a one-month low against the dollar on Wednesday as investors unwound positions in riskier assets ahead of the year-end, prompted in part by rising debt woes for Greece and Dubai. [USD/]

* However, the index of the dollar .DXY, against six major currencies, was down 0.3 percent in Asian trade.

* At 0300 GMT, the MSCI-index of Asian stocks ex-Japan .MSCIAPJ was down 0.5 percent while the Nifty SINc1 futures traded in Singapore were 1 percent lower, suggesting a lower opening in the domestic market.

* The partially convertible rupee INR=IN ended at 46.68/69 per dollar on Tuesday, having fallen to 46.76, its lowest since November 27, compared with Monday's close of 46.56/57.

sirfpaisa.com