Thursday, the Indian rupee declined to a 3-day low of 51.83 against the US dollar as India's industrial production and the weekly inflation continued to fall. The Central Statistical Office said India's industrial production declined 0.5% on a yearly basis in January, following a revised decrease of 0.6% in December. However, production dropped less than a 0.9% fall expected by economists. India's inflation rate fell for the sixth consecutive week, with the rate for the week ended February coming in at 2.43%, compared to 3.03% in the preceding week. This would be the smallest rise since June 8, 2002, when inflation was at 2.18%. The lowest ever inflation rate was 1.13%, which was recorded in the week ended Feb. 2, 2002. If the Indian currency weakens further, it may likely target the 52.03 level. The dollar-rupee pair closed yesterday's New York session at 50.98.

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