Rupee flat as political uncertainty weighs

The debate over the vote of confidence was started in the Parliament on Monday, a little impact was seen in the forex trading on Monday. The rupee pared early gains on Monday as traders were wary ahead of a parliament session on a vote of confidence and volatile local stocks. At 10:15 am, the partially convertible rupee was unchanged at its previous close of 42.76/77 per dollar. It had hit a 15-month low of 43.50 earlier this month.

The index had risen 8.4 per cent in the previous two trading sessions, boosted by slower-than-expected inflation and falling global oil prices, but is down about a third so far in 2008. Oil, India's biggest import, was below $130 a barrel after its biggest one-week slide on record as inconclusive talks between Iran and world powers over Tehran's disputed nuclear programme dimmed prospects of ending the row, according the media reports.