Millennium Post

Rupee at two-month low of 54.88 to $

The rupee continued its south-bound journey for the third consecutive session on Monday but recovered partially after logging an intra-trade low of 55.12, still depreciating by 13 paise to close at a fresh two-month low of 54.88 on fall in industrial production data and higher trade deficit.

Sustained dollar demand from importers, some weakness in local equities amid fresh capital outflows also weighed on the rupee while weakness in dollar overseas could not restrict the rupee fall. At the Interbank Foreign Exchange market, the domestic unit resumed better at 54.68 a dollar from Friday’s close of 54.75 and immediately touched a high of 54.61 on initial firm local equities.

However, when news of the fall in Index of Industrial Production, rise in retail inflation and higher trade deficit filtered in, it fell sharply to a low of 55.12 before recovering some ground to end at 54.88, still showing a loss of 13 paise (0.24 per cent).

FIIs for the first time in this month pulled out $4.28 million from equities on November 9, as per Sebi data. The dollar index was quoting lower by 0.10% against a basket of currencies.
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