The rupee weakened Monday, slipping from its 19-month highs against the US dollar, after a government report showed the nation?s industrial output rose less than economists forecast.
The currency snapped a two-day advance after the statistics department said in New Delhi that annual increase in factory production slowed to 15.1% in February, a three- month low.
The local unit closed at 44.4600 per dollar compared with 44.2900 per dollar Friday. It touched a 19-month high of 44.1800 per dollar earlier in the day. The currency snapped a two-day advance after the statistics department said in New Delhi that annual increase in factory production slowed to 15.1% in February, a three- month low.
?Some oil importers were seen buying dollar, which caused rupee wipe out its early gains,? said a chief dealer from a state owned bank. Meanwhile, the euro was at $1.3571, off the high of $1.3692 touched earlier today and $1.3498 on Friday. Earlier on Monday, the euro had risen sharply following news of a bailout plan by finance ministers of the eurozone for debt crisis-hit Greece.
India?s 10-year bonds fell, pushing yields near the highest level since October 2008, before a sale of government debt this week.
The yield on the 6.35% note due January 2020 climbed two basis points, or 0.02%, to 8.03%.
The securities dropped for a third day, the longest losing stretch in a month, ahead of the 130 billion rupees ($2.92 billion) auction of notes on April 15. Bonds fell on concern faster industrial production growth will accelerate inflation and prompt the central bank to raise interest rates this month.