Erasing all of the initial gains, Indian rupee ended weaker against dollar on Monday, for the fourth straight session, as a negative set of macroeconomic data weighted down on the rupee sentiments. India’s industrial activity slowed in March, after showing signs of sustained growth for four months, due to an unfavourable base effect and a broad-based slowdown in output of goods. The index of industrial production rose 4.4% in March over a year ago, compared to a revised 7% growth in the previous month. Also, the rate of Wholesale Price Index (WPI)-based inflation hit a four-month high in April, as food inflation beat deflationary trends from the month before and energy prices saw a sudden rise. The WPI rose to 3.18% in April, up from the 2.47% rise seen in March. Traders also remained cautious ahead of key economic data that is April CPI, scheduled to be released later in the day. On the global front, the euro headed for a third successive day of gains on Monday as a weak dollar helped the single currency recoup losses, as investors kept a wary eye on political events in Italy.
Finally, the rupee ended at 67.51, 18 paise weaker from its previous close of 67.33 on Friday. The currency touched a high and low of 67.62 and 67.20 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 67. 31and for Euro stood at 80.50 on May 14, 2018. While the RBI’s reference rate for the Yen stood at 61.54, the reference rate for the Great Britain Pound (GBP) stood at 91.24. The reference rates are based on 12 noon rates of a few select banks in Mumbai.
