Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
The Indian Rupee depreciated on Friday and remained weak for an 8th straight week on growing concerns that aggressive monetary policy tightening by central banks to curb inflation could raise the risk of a global economic slowdown.
The Rupee ended at 78.35/dollar from 78.30 at its close on Thursday.
The local currency weakened about 0.4% this week, compared with 0.3% fall last week.
The Rupee has also weakened over the last few sessions after FPI remained net sellers in the domestic equity and debt markets.
According to the latest data from NSDL, FPI have sold about $5.9 billion of domestic equities so far in June, compared with about $5.2 billion net sales for the whole of May.
Crude oil prices rebounded this Friday afternoon trade, while most of the EM and Asian peers were weak this Friday and weighed on sentiments.
India's bond yields rose marginally on Friday but fell for the first time in 3 weeks tracking a fall in oil prices as well as U.S. Treasury yields.
The benchmark 6.54% bond ended at 7.44% and against Thursday's close of 7.42%.
The U.S. dollar slipped on Friday afternoon trade in Asian as traders reduced bets on the interest rates path.
The Euro and the Sterling rebounded this Friday afternoon in Asian trade, while the Yen is trading marginally weaker on Friday afternoon trade.
