Mumbai: Rupee weakened in the afternoon trade against the US dollar, paring some of its early gains in the opening trade. Dealers said some demand seen for dollar towards noon pushed down the currency, but the unit is trading largely range bound.
At 2.11 pm, the local currency was trading at 62.5137, down 0.17% from its previous close of 62.41. The rupee had opened at 62.305 a dollar in the morning. Since January, the rupee has weakened 12.05% and is the third biggest loser in Asia after the Indonesian rupiah and the Japanese yen.
The dollar index, which measures the US currency’s strength against major global currencies, was trading at 80.591, against its previous close of 80.582.
Later in the day, the government is slated to release data on fiscal deficit for the month of October and gross domestic product (GDP) for the quarter ended 30 September.
India’s GDP grew by 4.4% in the June quarter.
Ahead of the GDP data, stocks were trading up with the 30-share BSE Sensex gaining 1.34% to trade at 20,811 points while the National Stock Exchange’s (NSE’s) broader 50-share Nifty index gained 1.4% to trade at 6,177.25 points.
India’s economic growth probably picked up slightly in the September quarter, but weak investment levels have tempered hopes that strong rural demand and a rebound in exports will drive a sustained recovery ahead of elections due early next year, Reuters reported.
A Reuters poll of 40 economists showed GDP likely expanded 4.6% year-on-year, only two basis points above the previous quarter, which was the lowest in four years, the report said.
The yield on the 10-year government bond trading at 8.742%, from its previous close of 8.726%.
