The Indian rupee weakened against the U.S. dollar in the morning deals on Monday, as investor sentiment dampened after China’s manufacturing sector shrank for a tenth month in December.
Data from Markit Economics showed that India’s manufacturing activity contracted for the first time in twenty six months in December, as Chennai floods triggered declines in output and new orders. The Nikkei Manufacturing Purchasing Managers’ Index, or PMI, dropped to 49.1 in December from 50.3 in November.
Against the greenback, the rupee fell to more than a 2-week low of 66.4850 from an early high of 66.1900. At last week’s close, the rupee was trading at 66.1300 against the greenback.
If the rupee extends its downtrend, it is likely to find support around the 67.00 area.
The material has been provided by InstaForex Company – www.instaforex.com