Rupee falls 33 paise amid fresh dollar demand, weak eco data

Mumbai, PTI | Updated : 15 July 2013, 07:27 PM

The rupee declined 33 paise, the most in a week, to 59.89 against the dollar on fresh demand from banks and importers amid disappointing industrial production, a fall in exports and higher inflation. 

The rupee resumed lower at 59.93 per dollar, compared with last weekend's level of 59.56 on the Interbank Foreign Exchange market, and once again fell below the 60 level. It hovered between 59.77 and 60.07 before ending at 59.89, a 0.55 per cent loss from the previous close. 

The rupee had declined 39 paise against the dollar on July 8, when it dropped to a record low of 61.21. 

Fresh dollar demand from banks and importers on the back of a strengthening dollar in the overseas market mainly affected the rupee. 

In New York, the US dollar advanced against major rivals on Friday, gaining against the euro on worries about Portugal and France. 

The rupee weakened today, taking cues from the surprise drop in industrial output, fall in exports and higher retail inflation, according to data released on Friday, said Pramit Brahmbhatt, CEO of Alpari Financial Services (India). The data added to worries for the economy, which already has a record current account deficit, he said. 

Inflation as measured by the wholesale price index snapped a four-month declining trend. Prices rose 4.86 per cent in June compared with 4.7 per cent in May, according to data released today by the Ministry of Commerce and Industry.

First Published: Monday, July 15, 2013 09:56 AM
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