Rupee breaches 64 levels; WPI data next key trigger

The rupee weakened, tracking weakness in offshore non-deliverable forwards but better-than-expected factory output data may limit a sharp fall

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MUMBAI: The rupee today fell by 65 paise to 64.15 against the dollar in early trade on Friday, tracking weakness in offshore non-deliverable forwards but better-than-expected factory output data may limit a very sharp fall.

The partially convertible rupee was trading at 64.00/01 per dollar by 09:05 am versus its previous close of 63.50/51 on Thursday.

Forex dealers said besides dollar gaining against other currencies in the global markets ahead of a US Federal Reserve policy meeting next week, a lower opening in the domestic equity market also put pressure on the rupee.

The benchmark 10-year bond yield was trading up 2 basis points at 8.52 per cent.

The one-month offshore non-deliverable forward rate is trading at 64.72 versus its previous close of 64.30.

Traders say wholesale price inflation data, due on Monday, will be the next key trigger for markets.
RAHUL KUMAR GUPTA
PGDM