Rupee weaker ahead of IIP, consumer inflation data

Dollar demand from custodian banks weighs

The rupee fell to 63.45/46 versus its prior close of 63.24/25, as investors remained cautious ahead of consumer inflation and industrial output data due at 5.30 pm.

Dollar demand from custodian banks is also pushing up the USD/INR pair.

High inflation could raise expectations the RBI will raise interest rates one more time after two hikes. Its next policy review is in mid-December.

Traders are also on watch for RBI intervention after the central bank was spotted selling dollars in late trading on Monday.