LM:Rupee weakens to 62.16 per dollar on economic growth concerns
Mumbai: The Indian rupee weakened on Tuesday, a day after finance minister P. Chidambaram said the country is in control of its finances, as analysts cautioned that a significant reduction in fiscal deficit was due to a cut in capital expenditure that could affect economic growth.
At 2.29pm, the local currency was trading at 62.155 per dollar, down 0.42%, from the previous close of 61.8575.
Earlier, the unit had opened at 62.015 and touched a low of 62.1963 per dollar.
Analysts also pointed out that government has deferred Rs.35,000 crore of oil subsidy to the next fiscal that would increase the fiscal burden for next government.
The yield on India’s 10-year benchmark bond is trading at 8.777% as compared with its previous close of 8.806%. Bond yields and prices move in opposite directions.
BSE’s benchmark Sensex rose 0.74% to 20,618.74 points. The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.183, up 0.06% from the previous close of 80.136.​
