Re snaps 6-day gain, down on recession concern

MONEY MARKET ROUND-UP

Rupee fell against the dollar, snapping a six-day rally, as mounting evidence the global economy is headed for a recession prompts investors to shun riskier emerging-market assets.

The currency slid the most in two weeks as stocks declined, following losses elsewhere in Asia and the US, where reports yesterday showed employers in October cut the largest number of jobs in six years and service industries contracted by the most on record. The European Union also reported a record slump in services activity yesterday and said retail sales slipped in September.

“The movement in the equity and currency market suggests concerns over global growth are far from over,’’ said Vikas Babu, a currency trader at state-owned Andhra Bank in Mumbai. “The undertone is still weak for the rupee.’’

The rupee fell 0.5 per cent to 47.685 versus the dollar at the 5 pm close in Mumbai, according to data compiled by Bloomberg. That is the biggest decline since October 23. Seven of the 10 most-traded Asian currencies outside Japan declined.