Rupee weakens to 60.35 against dollar

Currency tracks losses in stock markets on poor inflation and factory output data

The Indian rupee weakened to 60.35 against a US dollar Tuesday tracking losses in stock markets on poor inflation and factory output data.

The partially convertible rupee was quoted at 60.31 against a dollar at the Interbank Foreign Exchange Markets here at 12.41 p.m., 14 paise weaker than its previous session's close at 60.17.

The value of rupee had dropped by 10 paise to 60.17 against a dollar Friday, the previous trading session. Markets were closed Monday due to Ambedkar Jayanti and a number of harvest season festivals like Baisakhi, Rongila Bihu and Vishu celebrated in different parts of the country.

The Indian rupee touched a low of 60.24 and high of 60.35 in the intra-day.

Factory output as well as inflation data have disappointed the markets. The benchmark Sensex slumped 183 points, while Nifty was down 58 points.

According to data released by the ministry of commerce and industry Tuesday morning, the headline inflation measures in terms of the WPI rose to three-month high of 5.7 percent in March from 4.68 percent in the previous month due to sharper increase in food and fuel prices.

Industrial output contracted by 1.9 percent in February against a growth of 0.8 percent in the previous month due to a sharp drop in manufacturing production, the Central Statistics Office (CSO) data showed Friday.