Rupee falls to more than 15-month low on shares, euro

Mumbai : The Indian rupee weakened to its lowest level in more than 15 months on Tuesday after shares turned negative and the euro fell against the dollar.

At 1:45 p.m. (0815 GMT), the partially convertible rupee was at 47.47/49 per dollar, after touching 47.51, its lowest since May 26, 2010.

The euro extended losses versus the Japanese yen on Tuesday, falling over one percent on the day as European stocks gave up early gains to trade in negative territory and with traders on edge ahead of an Italian bond auction.

Gold prices turned negative in international markets, dropping 1 percent in volatile trade before bouncing back above $1,800 an ounce, as gains in the dollar put fresh pressure on the precious metal.

Spot gold dropped to a session low at $1,795.34 an ounce and was down 0.4 percent at $1,805.80 an ounce at 0814 GMT. Earlier it rose as high as $1,835.19 an ounce.

The euro zone's leaders need to show markets they are taking responsibility for its debt crisis and work out how to tally monetary union with budget policy, Spanish press reported US President Barack Obama as saying.

Greece is the immediate concern, but an even bigger problem is what may happen should markets take another run at the larger economies of Spain and Italy, the EFE news agency reported Obama as telling a roundtable with Spanish-speaking journalists in Washington.

Global demand for oil will be lower than expected this year and next because of economic slowdown, the International Energy Agency said on Tuesday, saying the slowdown could get worse.

The IEA cut its estimate for this year by 200,000 barrels per day and by twice as much, 400,000 barrels per day, for next year.