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The Indian rupee dropped for a second day on Tuesday, falling to a one-week low as a slide of more than 3 percent in the stock market fuelled worries of a revival in risk aversion among foreigners. The partially convertible rupee closed at 50.52/53 per dollar, off the day's low of 50.57 but still 0.6 percent lower than Monday's close of 50.23/25.
The rupee, which has risen for the past seven weeks, has fallen 1.4 percent over the first two days of this week. Indian financial markets are shut on Thursday and Friday. One-month offshore non-deliverable forward contracts were quoting at 50.75/85 per dollar, weaker than the onshore spot rate.

Copyright Reuters, 2009

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