Indian rupee down 15 paise against US dollar in early trade

Oct 14 2013, 14:09 IST
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SummaryDealers attributed the Indian rupee's fall to fresh demand for the American currency from importers and a weak opening in the domestic equity market.

The Indian rupee weakened on Monday, after wholesale price inflation (WPI) came in above analysts' estimates, raising expectations that the central bank will raise interest rates for a second consecutive month in late October.

The WPI in September rose to 6.46 per cent, above analysts' estimates of 6.00 percent and above the 6.10 per cent seen in August.

India's benchmark 10-year bond yield rose 8 basis points to 8.58, while the rupee weakened to 61.24 per dollar from around 61.20.

Earlier, The Indian rupee lost 15 paise to 61.22 against the US dollar in early trade on the Interbank Foreign Exchange market due to fresh demand for the US currency from importers amid a lower opening in the domestic equity market.

The Indian rupee had gained 32 paise to close at a fresh two-month high of Rs 61.07 against the dollar in the previous session amid rise in local equities and sustained capital inflows.

Dealers attributed the Indian rupee's fall to fresh demand for the American currency from importers and a weak opening in the domestic equity market. But, dollar's weakness against other currencies overseas restricted the rupee's fall, they added.

Meanwhile, the BSE Sensex today fell by 30.71 points, or 0.14 per cent, to 20,497.88 in early trade.

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