Mumbai: The Indian rupee trimmed losses in afternoon trade on Wednesday tracking a recovery in the domestic shares, which had fallen more than 2% earlier. Dealers said a better-than-expected factory output also helped.
At 2:55pm, the partially convertible rupee was at 48.35/36 per dollar, off an early low of 48.50, its weakest since 30 July, but still below its Tuesday’s close of 47.97/98.
Indian shares were trading down about 0.5%, after having dropped more than 2% just before the industrial production data was announced.
India’s industrial output expanded at its fastest pace in 16 months in June, beating forecasts by a wide margin, as higher salaries of government employees and stimulus spending boosted consumer demand.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX were both quoting at 48.43 each, with the total traded volume on the two exchanges at about $1.7 billion.