The rupee shed 23 paise to end at 59.86 to the dollar on Monday against the previous close of 59.69 on weaker industrial data and high demand for the currency from importers.
The Consumer Price Index (CPI) inflation for June disappointed by touching almost double-digit growth at 9.9 per cent as against 9.3 per cent in May.
The index of industrial production (IIP) for May fell 1.6 per cent, versus a growth of 2.3 per cent in April, way below market expectations of 1.4 per cent.
“Weaker IIP data and capital outflows weighed on the rupee,” said Ashish Parthasarthy, Treasury Head, HDFC Bank.
The rupee opened 20 paise lower at 59.89. Intra-day, it touched a low of 60.08 and a high of 59.77.
Further, the rise in inflation numbers in June signal a limited scope for a rate cut later this month in the first-quarter review of the monetary policy.
Last week, the central bank and market regulator took steps to curb speculative trading in the currency market. This has helped contain volatility, however, the weakness in the rupee continued.
Call flat, bonds up
The inter-bank call money rates ended flat at 7.15 per cent from its previous close. The widely traded 8.33 per cent government bond, maturing in 2026, ended higher at Rs 105.4 from the previous close of Rs 105.1, while yields softened to 7.66 per cent against the previous close of 7.70 per cent.