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Indian equities also edged lower after the news, tracking the similar global trend. The persistent outflow of foreign funds is making Indian rupee weak.
The death of the Korean leader Kim Jong-il also faltered investment sentiments further. This news has created political instability in the country, thus dollar rising against Asian currencies and investors finding safe haven in dollars.
Weakness in the euro zone and drop down in Asian currencies against dollar plus fall in Indian equities are the main causes of rupee depreciation.
At 1.16 p m IST, the rupee was at 53 per dollar.
Meanwhile, At 1.20 p m IST, the benchmark BSE Sensex was seen trading at 15,291.48 down by 199.87 points or 1.29%. The NSE Nifty was seen trading at 4,587.90 down by 64.55 or 1.39%.
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