Rupee hits 14-month low on Europe debt woes

The rupee weakened further to touch a 14-month low in afternoon trade on Monday as the impact of Europe’s deepening debt crisis on global growth triggered a flight from riskier assets.

* World shares fell close to 1.5 percent on Monday with European equities tumbling more than 2 percent as investors worried that Greece would default amid signs of disagreement among eurozone policymakers.

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* At 1:40 pm, the partially convertible rupee was at 47.10/11 to a dollar, after dipping to 47.1150 -its weakest since July 22, 2010, and 1.16 percent weaker than Friday’s close of 46.56/57.

* The euro too was hit by fears over the region’s debt crisis and fell to a fresh 10-year low against the yen.

* The euro was at $1.3568, sharply lower from $1.3807 when the rupee closed on Friday, while the index of the dollar against six major currencies was at 77.462 points from 76.614 points previously.

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Reuters