News Analysis

Rupee extends weakness for second straight session

Updated on 15 April 2019 05:21 PM

Extending weakness for the second day, Indian rupee depreciated against dollar on Monday, on increased demand for the US currency from importers. Traders remained concerned with data showing that India's retail inflation saw a marginal rise of 2.86% in March on account of increase in prices of food articles and fuel. Also, industrial growth fell to its lowest in 20 months in February, barely rising from a year ago as manufacturing contracted following muted consumer demand, and public investment slowed toward the fiscal year-end. Cautiousness remained among the traders with data showing that Wholesale price-based inflation rose for the second consecutive month to 3.18 percent in March on costlier food and fuel. The Wholesale Price Index (WPI) based inflation was at 2.93 percent in February. It was 2.74 per cent in March 2018. However, positive trend in equity market helped in restricting the slide in the Indian unit to some extent.  On the global front, yen fell towards a 2019 low on Monday as a rally in global markets cut into demand for currencies considered safe havens.

Finally, the rupee ended at 69.42, 25 paise weaker from its previous close of 69.17 on Friday. The currency touched a high and low of 69.46 and 69.05 respectively. The reference rate for the dollar stood at 69.22 and for Euro stood at 78.30 on April 15, 2019. While the reference rate for the Yen stood at 61.84, the reference rate for the Great Britain Pound (GBP) stood at 90.61.