Rupee likely to open low on import payments

Mumbai: The rupee is likely to open down on Monday weighed by dollar demand from oil importers and cautious global risk appetite due to concerns over a slowdown in China.

But movement in local shares will be closely tracked by traders as the surprise 75 basis point cut in banks' cash reserve ratio announced by the Reserve Bank of India after market hours on Friday is expected to better sentiment.

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January industrial output data due around 0530 GMT is awaited for clues on growth in Asia's third largest economy and timing of the likely interest rate cuts from the RBI.

Indian industrial production (IIP) is likely to have grown by a median 2.1 percent in January from a year earlier, compared with 1.8 percent in the previous month, according to a Reuters poll.

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Traders said the rupee should open around 49.90 to the dollar and move between 49.80 and 50.00. It closed at 49.84/85 on Friday.

At 0253 GMT, the MSCI index of Asian stocks ex-Japan was down 0.67 percent, while the Nifty India stock futures index in Singapore was up 0.52 percent.

Reuters