The rupee’s free fall continued as the Indian unit closed weaker at 56.77 after HSBC purchasing managers’ index (HSBC PMI) data showed that factory output shrank for the first time in four years.
India’s HSBC PMI figure shrank to 50.1 in May from 51 in April.
This supports the data of slow gross domestic product (GDP) growth the government released on Friday, which showed that growth in Asia’s third largest economy slowed to a decade low.
The focus now, for currency traders, shifts to the mid-quarter policy review of the RBI on June 17.
The rupee opened at 56.54 after closing at 56.50 on Friday.
The domestic equity markets lost about 150 points to close at 19,610.48.
Intraday, the rupee moved between a high of 56.40 and and low of 56.82.
Call rates, G-Sec
The interbank call money rates closed higher at 7.30 per cent from previous close of 6.75 per cent.
The 8.15 per cent government security, which matures in 2022, closed lower at Rs 104.49 from previous close of Rs 104.58. Yields hardened a tad to 7.46 per cent from previous close of 7.44 per cent.