Rupee eases

The Indian rupee slipped to its lowest close in two weeks on Tuesday, tracking losses in Asian currencies as investors pared holdings in emerging markets on concerns about the fallout from the US subprime crisis. The rupee ended at 39.42/43 per dollar, moving down from Monday8217;s close of 39.36/37. It hit a near decade high of 39.16 last week.

8220;There are no real inflows at the moment, but there were outflows, and the market is positioning for more funds to go out,8221; said a senior dealer with a private bank. Overseas investments into local equities have been a key driver of the rupee, which has gained more than 12 per cent this year. Data showed the Reserve Bank of India bought a record 11.86 billion in intervention in September to slow the rupee8217;s rise after US rate cuts drew huge inflows into the stock market.