Rupee down 19 p on poor IIP data, trade deficit
At the Interbank Foreign Exchange (Forex) market, the local unit commenced strong at 54.40, which was also to be the day’s high, as against previous close of 54.57. This initial buoyancy was on the back of strong equities at initial stages on better-than-expected third quarter results by Infosys.
Rupee later fell back in line with domestic stocks following steep fall in industrial production data and rise in trade deficit to touch a low of 54.84. It ended at 54.76, showing a fall of 19 paise or 0.25%.
In last 3 days, it had gained 66 paise or 1.2%. “Rupee was seen depreciating against dollar today after weaker November IIP figures came out at -0.1%. In the last few sessions, rupee had gained on account of flows in the markets and dollar index weakening internationally,” said Abhishek Goenka, Founder & CEO, India Forex Advisors.
The dollar index, a gauge of six major global currencies, was up by 0.03% in late trades. India’s exports contracted by 1.9% in December to $24.88 billion, down for the eighth month in a row due to demand slowdown in the US and Europe.
Trade deficit, which represents an outflow of domestic currency, stood at
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