Indian rupee plunges 46 paise vs dollar over this period; things may get worse

The Indian rupee has depreciated to more than 15-month low this week against US benchmark dollar index at the interbank forex exchange. On Friday, the Rupee has ended below 0.300 points or 0.45% at 67.405 against US dollar  in a highly volatile trade amid weak dollar cues. 

According to a PTI report, subdued macro-economic sentiment and continuous outflows of foreign funds coupled with rising geo-political tensions in the Middle-East after the decision of the US President to withdraw from the nuclear deal with Iran largely weighed on the trading front.

For the week, it depreciated by a steep 46 paise, extending the fall for the straight fifth-week.

On Friday, India's Industrial Production (IIP) or factory output dropped at five month low to 4.4% in the month of March 2018 compared to 7% growth in February month and 7.4% rate in March 2018. The sluggish performance comes as a concern considering IIP grew to 5-year high at 8.5% in December 2017, indicating that the shocks of demonetisation and GST have started to fade. 

Meantime, Sensex closed at 35,535.79 higher by 289.52 points or 0.82%, whereas Nifty 50 finished at 10,806.50 above 89.95 points or 84%. The performance was swayed by Karanataka poll which is scheduled today. 

Also foreign portfolio investors (FPI) had an selling sentiment, as an outflow of Rs 1,544.57 crore was recorded cumulatively in equity, debt and hybrid market, as per NSDL data.