Yesterday's bomb blasts on Mumbai's rail network have hit confidence in the Indian currency and seen the rupee fall against the dollar.

This morning the rupee stood at 46.2144 to the dollar, 58.9855 to the euro and at 85.3601 to the pound.

The bomb attacks on trains and in commuter stations in the commercial capital of Mumbai killed at least 183 people and injured 714.

"The market's become cautious now on India following these bombs and is watching carefully how the government will manage the situation," Irene Cheung, an economist and strategist at ABN Amro Bank in Singapore, told Bloomberg.

"As a result, the rupee has come under some selling pressure."

Despite the losses it is thought that the fall is a short term phenomena and that the Central Reserve Bank of India will step in to shore up the currency, preventing it from falling below 46.5 against the US dollar.