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The rupee was trading weak at 68.20 against the US dollar in the evening session on fresh demand for the American currency from banks and importers despite positive macro economic data.
According the government data released yesterday, industrial production in November grew 5.7 per cent compared to a contraction of 3.4 per cent in the same month a year ago.
While retail inflation remained subdued at a multi-year low of 3.41 per cent in December.
Dealers attributed the rupee’s fall to increased demand for the American unit from importers but the dollar’s weakness against some other currencies overseas capped the fall.
The domestic unit opened weak by 8 paise at 68.16 against the previous close of 68.08 at the Interbank Foreign Exchange market today.
It hovered in a range of 68.26 and 68.14 before quoting at 68.20, down 12 paise at 4.25 pm local time.
Meanwhile, the benchmark BSE index ended down 9.1 points or 0.03 per cent at 27,238.06.
In the overseas market, the dollar inched up from a five-week low against the yen and steadied against the broader basket of currencies on Friday, while the markets brushed off softer-than-expected Chinese exports figures.
The dollar last stood at 115.04 yen, up about 0.3 per cent from late US levels after having tumbled to a five-week low of 113.75 yen on Thursday in the wake of disappointment at President-elect Donald Trump’s failure to elaborate on fiscal stimulus plans during a news conference a day earlier.
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