Mumbai: The Indian rupee was trading stronger on Friday after data released by the government showed that Wholesale Price Index (WPI)-based inflation eased to 5.05% in January, the lowest level in eight months. At 3.37pm, the domestic currency was trading at 62.1950 per dollar, up 0.40% from its previous close, while India’s equity benchmark Sensex on BSE was trading at 20,374.29 points, up 0.9%. Earlier, the currency had opened the session at 62.28 per dollar against its Thursday’s close of 62.4425. A Bloomberg poll had forecast the WPI inflation at 5.6% in January as against 6.16% in December. Inflation has been the major worry for the Indian central bank in the recent years. Recently an expert-panel headed by Urjit Patel, one of the deputy governors at the Reserve Bank of India, had recommended to adopt retail inflation as the primary price indicator for monetary policy formulation. Retail inflation for January slowed to 8.79% from 9.87% in December, mainly on account of easing prices of vegetables. The yield on India’s 10-year benchmark bond was trading at 8.834% compared with Thursday’s close of 8.868%. Bond yields and prices move in opposite directions. The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.167, down 0.19% from its previous close of 80.244.

Source