Rupee Depreciated Against The U.S. Dollar
The rupee witnessed heavy volatility and depreciated 45 paise to RS. 81.27 against the US dollar in line with a muted trend in domestic equities.
The local currency opened at 80.55, appreciating 0.34%, or 27 paise.
On Friday, the rupee appreciated by 62 paise to close at 80.78 against the dollar.
“The rupee depreciated on recovery in dollar and weak domestic markets. However, Rupee opened higher on upbeat macroeconomic data,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
India’s industrial production expanded by 3.1% in September, boosted by manufacturing, mining and power sectors, according to official data released on Friday.
“Overall weakness in the Dollar amid rising expectations of the not-so-aggressive Federal Reserve may also support the Rupee at lower levels. Sustained FII inflows may also support Rupee. However, higher crude oil prices may cap sharp upside,” Choudhary added.
On the domestic macroeconomic front, the wholesale price-based inflation declined to a 19-month low of 8.39% in October, on easing prices of fuel and manufactured items.
The rupee had hit a record low of 83.29 on Oct. 20.
(Inputs from PTI)