Indian Rupee Seen Down on Risk Aversion Worry.

Mumbai The Indian rupee is expected to start lower as investor appetite for risky assets took a beating after rating agency Moody's warned it may cut its triple-A ratings for France, Britain and Austria.

* At 0228 GMT, the MSCI index of Asian stocks ex-Japan was down 0.72 percent, while the Nifty India stock futures in Singapore were 0.24 percent lower, suggesting a weak start for local shares.

* Doubts over Athen's ability to pursue austerity reforms, with social unrest intensifying, also weighed on sentiment for shares and the euro.

* For more details on the Moody's ratings on the European countries, see

* Traders expect the rupee to open around 49.35 to the dollar and move between 49.00 and 49.50, after closing at 49.19/20 on Monday.

* The central bank could step in to support the rupee if it slides sharply, traders said. The Reserve Bank of India sold more than $9 billion in the spot and forwards market in December, its biggest intervention in nearly three-and-half years.

* The market would watch January inflation data due around 0630 GMT for direction, traders said.

MARKETS RUPEE (OPEN): Indian rupee opens lower on outflow concerns

The Indian rupee opened weaker on worries over foreign fund outflow after rating agency Moody's warned it may cut its triple-A ratings for France, Britain and Austria.

At 9 a.m. (0330 GMT), the rupee was at 49.35 to the dollar, compared with Monday's close of 49.19/20.

Source : expressindia.com