Indian Rupee Falls Against Euro as Indian Economy Slows

The Indian rupee fell against the euro on Tuesday as the Indian economy slowed down. According to the Central Statistics Office data, the Indian economy expanded 7.8% in Q1 on a yearly basis, down from 8.3% in Q4 2010. The rupee fell against the euro on the news. The euro stood at 64.7143 around 6.40 am GMT, or 0.55% higher than yesterday's trade. The Indian economy is still growing strongly, however, and the rupee strengthened against the dollar. The dollar traded around 45.0250 or 0.31% below Monday's close. Traders who believe the strength of Indian economy will push the value of rupee higher will be interested in the WisdomTree Dreyfus Indian Rupee Fund (NYSE: ICN) or the Market Vectors Indian Rupee/USD ETN (NYSE: INR).