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Rupee turns weak on dismal set of macro-economic data

13 Aug 2014 Evaluate

Indian rupee, after getting a weak start, was trading lower on Wednesday as higher-than-expected jump in CPI and slower growth in factory output hurt sentiment for the Indian currency. Limiting central bank’s scope for easing policy rates, provisional annual inflation rate based on all India general Consumer Price Index (CPI) (Combined) rose more than expected at 7.96% in July as compared to 29-month low of 7.31% in June and 9.64% in the July, 2013, while contradicting indications of strong recovery in domestic economic growth, country’s annual industrial output growth, measured by index of industrial production (IIP), slowed down to 3.4% y-o-y in the month of June as compared to 4.7% in May.  However, positive local equities to some extent were limiting further downtrend of local unit. Meanwhile, on the global front, dollar edged higher in Asia on Tuesday, getting a slight lift as U.S. Treasury yields inched away from recent lows, though concerns over rising tensions in Ukraine and the Middle East still looked set to cap the greenback's advance.

The partially convertible currency is currently trading at 61.23, weaker by 15 paise from its previous close of 61.08 on Tuesday. The currency touched a high and low of 61.29 and 61.21 respectively.  The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.18 and for Euro stood at 81.77 on August 12, 2014. While, the RBI’s reference rate for the Yen stood at 59.81, the reference rate for the Great Britain Pound (GBP) stood at 102.5578. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Date1US$1GBP
August 12, 201461.18 102.5578
August 08, 201461.55 103.5028

(RBI-Reference Rate) 

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