The Indian rupee on Friday weakened against the US dollar, tracking the weak macroeconomic data and losses in the Asian currencies markets. This was the seventh out of 10 trading sessions when the rupee was trading lower.At 9.12am, the home currency was trading at 66.75, down 0.20% from its previous close of 66.63. The rupee opened at 66.76 a dollar and touched a low of 66.80.
India’s factory output barely grew in March and retail inflation accelerated in April, sending contradictory signals ahead of next month’s monetary policy review by the Reserve Bank of India.The Index of Industrial Production (IIP) rose 0.1% in March and retail inflation accelerated to 5.39% in April from 4.83% in March, as food inflation quickened to 6.32% from 5.21% the previous month.
Asian currencies were trading lower. South Korean won was down 0.43%, Malaysian ringgit 0.3%, Taiwan dollar 0.24%, Indonesian rupiah 0.18%, Singapore dollar 0.17%, Thai baht 0.11% and China renminbi 0.07%. However, Japanese yen was up 0.22%.India’s benchmark Sensex index fell 0.19% or 48.47 points to 25,741.75. So far this year, Sensex is down 1.7%.
India’s 10-year bond yield was trading at 7.423%, as compared with its Thursday’s close of 7.424%.So far this year, the rupee has weakened 0.9%, while foreign institutional investors have bought $1.77 billion from the local equity market and sold $146.70 million in debt markets.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.161, up 0.02% from its previous close of 94.15.The government will issue wholesale price inflation (WPI) data on 16 May after 12pm. According to Bloomberg analysts, WPI will be at -0.2% for April against -0.85% in March.