Rupee loses after industrial output, consumer inflation data
Reuters Market Eye - The rupee falls to 53.97/98 from its previous close of 53.8450/8550 on data showing December factory output unexpectedly contracted, even as consumer price-based inflation stayed well above 10 percent. The pair had been trading at 53.88 before the data.
The two sets of data are keeping the prospect for RBI rate cuts in March uncertain. Traders said January WPI data, due on Thursday, would be key in setting expectations.
Traders expect good resistance at 54.05 levels, which if broken, could take the pair to 54.25-30.
The 53.90-54.05 level for USD/INR has marked the highs over the 7 trading days between January 21-29 and marks the 38.2 percent retracement of the 55.89 (November 26) and 52.87 (February 5) decline.
(Reporting by Swati Bhat)
- Tweet this
- Share this
- Digg this
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- REFILE-British Muslims urge cooperation in Foley murder hunt
- UPDATE 4-Family Dollar spurns Dollar General bid on antitrust concerns
- UPDATE 5-U.S. aid workers who survived Ebola leave Atlanta hospital
- Ukraine's Poroshenko talks tough ahead of meetings with Merkel, Putin
Government officials painted an upbeat picture for the economy on Thursday as it struggles to emerge from the longest spell of sub-par growth in decades and promised to tighten up risk management at the country's dominant state banks. Full Article