* Rupee snaps three sessions of gains
* Euro slips after German data, BOE Governor comments
* CLSA, Citi also cut India 2012/13 GDP forecast below 6 pct
By Subhadip Sircar
MUMBAI, Aug 8 (Reuters) - The Indian rupee fell on
Wednesday, snapping a three-session winning streak, led by
dollar demand from oil refiners and a late fall in the euro.
Global risk sentiment fell after German data showed imports
and exports falling and Bank of England Governor Mervyn King
said there was enormous uncertainty about the euro.
Local shares also reflected the global sentiment. The
benchmark index gave up gains to end flat at 17,600.56
after rising as much as 0.7 percent during the session.
The rupee saw decent two-way interest in the session, with
the unit trading in a 54.9550-55.43 band to the dollar.
Dollar demand from oil refiners continued into the session,
while inflows kept a lid on the rupee's losses.
Dealers said that while the rupee will continue to track the
euro, the market is also looking at some action from the
government as well as the June factory data due Thursday to get
a health-check on the economy.
India's industrial output grew at a slower pace in June,
hobbled by weak investment at home because of policy inaction
and a drop in export orders from the United States and Europe, a
Reuters polls showed on Tuesday.
A raft of brokerages and banks have cut India's growth
forecasts for the current fiscal year. CLSA and Citigroup
forecast the economy to grow about 5.5 percent, way below the
cental bank's downward revised estimate of 6.5 percent.
"So far, rallies in the rupee have been short-lived. We
expect this to continue till tangible progress is made on
resolving India's 'triple deficit' problem i.e. trade, fiscal
and policy deficits," said Rajesh Cheruvu, chief investment
officer for RBS Private Banking in India.
The partially convertible rupee closed at 55.42/43
per dollar as per the SBI closing rate versus
its previous close of 55.0650/0750.
The one-month offshore non-deliverable forward contracts were
at 55.68, while the three-month was at 56.36.
In the currency futures market, the most-traded near-month
dollar/rupee contracts on the National Stock Exchange, the
MCX-SX and the United Stock Exchange all closed at around 55.44
with the total traded volume at around $5 billion.
(Editing by Prateek Chatterjee)