Reply #13: Indian rupee falls as stocks slide

[Ghost Dog]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061212:MTFH27852_2006-12-12_10-01-31_BOM188705&type=comktNews&rpc=44

MUMBAI, Dec 12 (Reuters) - The Indian rupee <INR=IN> fell to its lowest in more than two weeks on Tuesday as a sharp drop in the stock market weighed on sentiment, dealers said.

At 3:10 p.m. (0940 GMT), the rupee <INR=IN> was quoted at 44.9250/9350 per dollar, down from Monday's 44.8350/8450 and its lowest since Nov. 24.

"The stock market correction is weighing on sentiment and there are worries whether foreign inflows will continue at the same pace or not," said a treasurer at an Indian bank said.

Indian shares fell as much as 4.5 percent to a seven-week low on Tuesday, extending a 2.9 percent drop on Monday, as investors worried that tighter monetary policy could impact demand and growth.

Unexpectedly soft growth in industrial output -- production rose an annual 6.2 percent in October, below market forecasts of 10.9 percent -- added to the negative sentiment.

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