The Indian rupee weakened against the U.S. dollar in the morning deals on Monday, after Nitish Kumar-led Grand Alliance defeated the BJP-led National Democratic Alliance (NDA) in Bihar Assembly election.
The Bihar results have poured water on the BJP’s hopes to strengthen its position in the Upper House, where BJP is in a minority and facing hurdles to push through crucial economic reforms.
Weak Chinese trade data released over the weekend and the likelihood of the U.S. Federal Reserve increasing short-term interest rates in December dampened investor sentiment.
Against the greenback, the rupee fell to nearly a 2-month low of 66.5000 from an early high of 66.3500. At Friday’s close, the rupee was trading at 66.0600 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