Rupee drops 48 paise to 61.55/$

Rupee drops 48 paise to 61.55/$

The rupee ended two sessions of gains and fell 48 paise to 61.55 against the dollar on Monday after weak inflation and industrial output data amid fresh demand from importers for the US currency.

The decline came even as local equities firmed up amid sustained capital inflows. A weak dollar overseas also failed to stem the rupee’s fall, a forex dealer said.

At the interbank foreign exchange market, the rupee resumed lower at 61.15 a dollar from the previous close of 61.07. It then dropped to the day’s low of 61.55, a loss of 48 paise or 0.79 per cent. In the previous two sessions, the currency had gained 86 paise.

“The rupee was seen depreciating against the US dollar today due to weak IIP data released on Friday, WPI released on Monday and dollar demand,” said Abhishek Goenka, CEO of India Forex Advisors, Abhishek Goenka said.

He added that the market will continue to remain volatile amid US debt ceiling issue. The government said wholesale price inflation was at a seven-month high of 6.46 per cent in September, compared to 6.1 per cent in August.

The index of industrial production grew 0.6 per cent in August compared with 2.8 per cent in July, the government said.

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