Mumbai: India's rupee slipped to a two-month low on signs investors will favour the relative safety of the dollar over emerging-market assets following a military skirmish on the Korean peninsula.
The rupee also fell on speculation investors will avoid riskier assets after Standard & Poor's lowered Ireland's credit rating by two notches, fanning concern Europe's debt crisis will worsen.
The Indian currency declined 0.3 per cent to 45.70 per dollar as of the 5pm close in Mumbai, according to data compiled by Bloomberg.
"The rupee has got pushed down as the Korean crisis added to weak global cues to provide safe-haven status to the dollar," J. Moses Harding, a Mumbai-based executive vice president at IndusInd Bank Ltd., wrote in a research note yesterday.
