Rupee down by 17 paise at 63.61 vs US dollar

The rupee turned weak after last week's four-day gain, still down by 17 paise at 63.61 against the US currency in late morning trade on fresh dollar demand from banks and importers amid higher dollar overseas.

The rupee resumed sharply lower at 63.62 per dollar as against last weekend's level of 63.44 at the Interbank Foreign Exchange market.

It moved in a range of 63.65 and 63.56 per dollar during the morning deals before quoting at 63.61 at 1040 hrs.

The domestic currency had gained around 40 paise during the last four sessions to end at two-month high of 63.44 against the greenback last Friday.

Oil fell in Asia early today as investors digested the implications of Greece rejecting tough austerity demands from creditors which could send the debt-strapped nation crashing out of the Eurozone, analysts said.

The Euro fell today in early Asian trade, while the safe-haven yen rallied after Greeks voted to reject terms of a rescue package, deepening the country's financial crisis that could splinter Europe if creditors refuse further aid.

Meanwhile, the benchmark 30-share index Sensex was trading down by 216.17 points or 0.77 per cent to 27,876.62 at 1045 hrs.

Eurogroup ministers expect 'new proposals' from Greece.

Athens: Eurogroup ministers expect fresh reform proposals from the Greek government in talks on Tuesday, a statement said on Monday, a day after Greeks overwhelmingly rejected terms demanded by creditors.

"The Eurogroup will discuss the situation following the referendum in Greece that was held on 5 July 2015. Ministers expect new proposals from the Greek authorities," said the statement from the Eurogroup, which includes the 19 finance ministers from countries using the single currency.

The ministers will meet at 1100 GMT on Tuesday, hours before leaders from the eurozone nations meet in an extraordinary summit to decide the next way forward after the referendum.

Late Sunday, Eurogroup head and Dutch Finance Minister Jeroen Dijsselbloem called the victory of the `No` vote "very regrettable" with Greece`s place in the eurozone in jeopardy.

Eurozone ministers on Monday reacted strongly to the shock vote result, with hardliners insisting that any initiative to solve the crisis must come from the far-leftist government in Athens.

"The ball is now in Greece`s court," wrote Finland`s finance minister, Alexander Stubb on his personal blog.

"No matter what happens next, the consolidation of the country`s economy will require extensive reforms," he added.

Spain meanwhile held a more conciliatory line with Economy Minister Luis de Guindos leaving the door open for talks on a third bailout despite the broken down negotiations with Greece.

Greece "has the right to ask for a third rescue package. The Spanish government is open to these negotiations," he said.

Sensex sinks 315 points in early trade on Grexit fears.

 The benchmark BSE Sensex dipped below the 28,000-mark by plummeting over 315 points in early trade on Monday as funds and investors indulged in reducing exposures amid weak cues from other Asian markets as Greek voters have rejected more austerity demands from creditors.

The 30-share index cracked the 28,000-mark by tumbling 315.21 points, or 1.12 per cent, to 27,777.58.

The gauge had gained 146.99 points in the previous session on Friday on Reserve Bank Governor Raghuram Rajan's comments that India's exposure to Greece is limited.

In a similar fashion, the National Stock Exchange index Nifty slipped below the 8,400-mark by falling 98.75 points, or 1.16 per cent, to 8,386.15.

All the sectoral indices, led by oil & gas, FMCG, healthcare and realty, were trading in the negative zone, falling up to 1.32 per cent.

Brokers said sentiments on the domestic bourses were adversely affected, triggering selling by participants, largely in tandem with falling trend at other Asian markets after Greek voters rejected more austerity demands from creditors, fuelling fears that the country will crash out of the Eurozone.

Besides, the weakening rupee which slipped from two-month high by depreciating 18 paise to trade at 63.62 against the dollar at the Forex market in early trade today, weighed on sentiments, they added.
Among other Asian markets, Hong Kong's Hang Seng index plunged over 3 per cent, while Japan's Nikkei index was trading 1.58 per cent down in early trade today.

The US Dow Jones Industrial Average ended 0.16 per cent lower in Friday's trade.