Rupee drops 48 paise to 61.55 against dollar

Mumbai, PTI | Updated : 14 October 2013, 07:55 PM

The rupee ended two sessions of gains and fell 48 paise to 61.55 against the dollar after weak inflation and industrial output data amid fresh demand from importers for the US currency.

The decline came even as local equities firmed up amid sustained capital inflows. A weak dollar overseas also failed to stem the rupee's fall, a forex dealer said.

At the interbank foreign exchange market, the rupee resumed lower at 61.15 a dollar from the previous close of 61.07. It then dropped to the day's low of 61.55, a loss of 48 paise or 0.79 per cent. In the previous two sessions, the currency had gained 86 paise.

"The rupee was seen depreciating against the US dollar on Monday due to weak IIP data released on Friday, WPI released today and dollar demand," said Abhishek Goenka, CEO of India Forex Advisors. Market will continue to remain volatile amid US debt ceiling issue."

The government said wholesale price inflation was at a seven-month high of 6.46 per cent in September, compared with 6.1 per cent in August.

The index of industrial production grew 0.6 per cent in August compared with 2.8 per cent in July, the government said.

The 30-share S&P BSE Sensex climbed 78.95 points. Overseas investors bought shares worth a net Rs 1,010.45 crore on October 11, according to provisional stock exchange data.

The dollar index was down 0.14 per cent against a basket of six major global currencies.

First Published: Monday, October 14, 2013 09:45 AM
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