LM:Rupee extends slide after GDP data dashes rate cut hopes
Mumbai: The Indian rupee extended losses to 56.6650/6750 per dollar, its weakest since 28 June 2012 and also compared with its previous close of 56.38/39 on Thursday.
Traders say continued dollar demand from state-run banks on behalf of the government for defence-related payments was pushing down the rupee.
The March quarter and full-year gross domestic product (GDP) growth data was in line with estimates, further denting rate-cut expectations by the Reserve Bank of India (RBI) at the 17 June policy review.
The rupee is expected to fall further during the session to 56.75 levels, around which exporter selling is anticipated. The domestic currency is mostly seen holding in a 56.40 to 56.75 range during the rest of the day, according to traders.
