LM:Rupee edges lower against dollar as inflation numbers weigh
Mumbai: The Indian rupee was trading down against the US dollar after data released by the government showed that wholesale price inflation rose sharply in September, higher than market expectations.
At 2.12pm, the Indian currency was trading at 61.21 per dollar, down 0.21%, from its previous close.
The partially convertible currency opened at 61.16 a dollar and touched a high and a low of 61.13 and 61.33, respectively.
India’s wholesale price inflation accelerated to 6.46% in September from 6.1% in the month before because of rising vegetable prices, including onion prices that increased more than fourfold during the month.
A Bloomberg poll of analysts had estimated that the wholesale price index will rise 6% in September.
The BSE’s equity benchmark Sensex was trading at 20,608.81 points, up 0.39% from its previous close.
The dollar index, which measures the US currency’s strength against major world currencies, was trading at 80.343, down 0.02% from its previous close of 80.362.
Since January this year, the rupee has weakened about 10.20% and has lost the third most after the Japanese yen and Indonesian rupiah in Asia.
The yield on the 10-year bond was at 8.552%, almost flat from its previous close of 8.484%.
