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Rupee heads for 4th weekly decline
June 20, 2014, 7:03 am

Indian Prime Minister Narendra Modi has vowed to step up investment and clear regulatory hurdles for businesses in the country [AP]

Indian Prime Minister Narendra Modi has vowed to step up investment and clear regulatory hurdles for businesses in the country [AP]

Headed for a fourth weekly decline, the longest dip since April, the Indian rupee lost 18 paise to 60.26 against the US dollar in early trade on Friday at the Interbank Foreign Exchange market due to increased demand for the US currency from importers.

Forex dealers attributed the rupee’s fall to increased dollar demand from importers amidst rising global crude prices but said that a higher opening in the domestic equity market and euro’s strength against the US currency capped the fall to some extent.

Indian Prime Minister Narendra Modi has vowed to step up investment and clear regulatory hurdles for businesses in the country.

Rising inflation, however, has made it tougher for India’s central bank chief Raghuram Rajan to lower lending rates even as economic growth sags.

Official data released earlier this week revealed inflation in India jumped to a five-month high in May.

The government also has to prepare for below average rainfall in the June-September monsoon that could trouble Indian agricultural output, leading to a spike in consumer inflation.

 

TBP and Agencies

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