Rupee trades weak in line with Asian currencies; weak local equities weigh too

Indian rupee, after opening on weaker note and although recouping some of its ground, continues to trade weak against dollar on Friday, tracking losses in most other Asian currencies. Additionally, losses of local equity markets are weighing on the sentiment of Indian currency. Besides prevailing caution ahead of Index of Industrial Production (IIP) data later in the day and Retail inflation data early next week, is adding to underlying pessimistic environment. On the macro-front, while consumer inflation rate is forecasted to have edged up slightly in March due to higher food prices, factory output in February is expected to have risen at its fastest annual pace in five months. Te partially convertible currency is currently trading at 60.28, weaker by 14 paise from its previous close of 60.14 on Thursday. The currency touched a high and low of 60.35 and 60.22 respectively.  The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 60.21 and for Euro stood at 83.33 on April 10, 2014. While, the RBI’s reference rate for the Yen stood at 59.18, the reference rate for the Great Britain Pound (GBP) stood at 101.0469. The reference rates are based on 12 noon rates of a few select banks in Mumbai. Date 1US$ 1GBP April 10, 14  60.21 101.0469 April 09, 2014 60..07 100.5639 (RBI-Reference Rate)