Rupee flat ahead of budget

Written by Reuters | Mumbai, February 29: | Updated: Feb 29 2008, 14:35pm hrs
The rupee was flat in early deals on Friday ahead of India's annual budget, though the dollar's broad weakness could bode well for the local unit, dealers said.

Finance Minister Palaniappan Chidambaram will deliver the budget speech at 11 a.m., the last full one of this government.

The dollar dropped to a three-year low against the yen on Friday amid renewed worries about the U.S. economy, rattling stock markets, bolstering bonds and helping drive up prices of safe-haven gold and oil to all-time highs.

At 9:05 a.m., the rupee was at 39.87/88 per dollar, unchanged from the previous close. It hit a five-month low of 40.25 last week.