According to the latest news, On October 13, Tuesday, the rupee decreased by 13 paise and settled at 73.41, against the U.S. dollar, tracking the strengthening of the American currency.
Meanwhile, the Indian currency opened at 73.41 against the U.S. dollar at the interbank forex market. It decreased by 13 paise over its earlier close.
On October 12, Monday, the Indian rupee touched 73.28 against the U.S. dollar.
According to Forex traders, investors are wary following muted domestic macro-economic data.
In September, growing food prices drove retail inflation to an eight-month high of 7.34 percent over the RBI’s comfort level. Industrial output proceeded to contract in August, as official data showed on October 12.
IIP decreased by 10.8% in July, while it fell 8% in August
The drop in the IIP (Index of Industrial Production) was equal to 10.8 percent in July. The contraction in August stood at 8 percent, as per the latest data.
According to the Founder and CEO at IFA Global, Abhishek Goenka, the August industrial production missed estimates, coming in at -8 percent year-on-year (expected – 7.8 percent). Given that the Reserve Bank prioritizes an increase over inflation, the market percent ad more into the IIP data than the CPI data. Abhishek Goenka added that they expect the USD-INR to spend several more sessions in the 72.90-73.90 range.
At the same time, the U.S. dollar, which gauges the USD’s strength against a basket of six currencies, gained 0.10 percent and settled at 93.16.
On the domestic equity market, the BSE benchmark Sensex increased by 147.46 points and stood at 40,741.26. In comparison, the broader NSE Nifty rose 48.25 points and touched 11,979.20.
According to provisional exchange data, international institutional investors were net buyers in the capital market. As they bought shares worth Rs 615.17 crore on a net basis on October 12.
Brent crude futures, the global oil benchmark, increased by 0.17 percent to $41.79 per barrel.