Indian rupee slumps to 10-week low... Rs15.07@Dh1

The beleaguered Indian rupee saw an early morning rout against the US dollar as investors continue to be spooked by the fast approaching US fiscal cliff.

The rupee once again fell below the Rs15-mark against the UAE dirham, trading at around Rs15.07 vs. Dh1 (Rs55.35 vs. $1) at 8.20am UAE time this morning.

This marks a 10-week low for the rupee, the lowest it has slumped since September 9, 2012, and with European leaders failing to agree on a debt pardon package for Greece, and US politicians failing so far to announce a resolution that kicks the austerity can down the road before January 2, 2013, chances are that the Indian rupee will continue to weaken by this year-end.

This is because, in the absence of any positive cues, global investors will continue to scurry towards the safe haven currency – US dollar – liquidating any major investments in emerging market currencies, including the Indian rupee, analysts believe.

EU finance ministers are scheduled to meet again on November 26 after yesterday’s talks failed to produce some sort of a debt pardon package for Greece, something that the markets were expecting. With the US markets soon shutting down for the Thanksgiving weekend, analysts however do not expect major currency movements over the coming few days.