Why did the Indian rupee weaken against the US dollar?

The rupee weakened due to a firm dollar in overseas markets and a cautious trend in domestic equities, limiting the upside for emerging market currencies.

What is the latest retail inflation rate in India?

India's new Consumer Price Index (CPI) series reported retail inflation at 2.75 percent for January.

How did foreign investors trade Indian equities?

On Thursday, foreign institutional investors purchased equities worth ₹108.42 crore, according to exchange data.

Home / Business and Economy / Rupee Weakens Amidst Dollar Strength

Rupee Weakens Amidst Dollar Strength

13 Feb

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Summary

Rupee closed 3 paise lower at 90.64 against the US dollar.
A firm dollar limited emerging market currency gains.
New CPI series launched, tracking retail inflation at 2.75%.

The Indian rupee experienced a slight weakening, closing 3 paise lower at 90.64 against the US dollar on Friday. Forex traders noted that the rupee traded in a narrow band, influenced by a strengthening US dollar and a cautious sentiment in domestic equities. The rupee's movement mirrored the performance of other emerging market currencies facing pressure from the firm greenback.

In parallel, India launched a new series for its Consumer Price Index (CPI), with the January data indicating retail inflation at 2.75 percent. This updated series aims to provide a more accurate reflection of inflation by including a broader range of goods and services and reallocating weightages based on contemporary spending patterns. This data is crucial for monetary and fiscal policy decisions.