The rupee falls 6 paise against the dollar in weak macro data

Mumbai, November 1 () The rupee depreciated in 6 countries at 70.98 against the US dollar at the beginning of trade on Friday because the weak macroeconomic environment and rising oil prices kept investors nervous.

However, a weak dollar against major foreign currencies, persistent inflows of foreign funds and a positive opening in the domestic stock market extended support for the rupee, currency traders said.

In the interbank currency market, the rupee opened with a weak note at 70.96 and fell further to trade at 70.98, 6 percent less than its previous close.

On Thursday, the rupee had settled with a marginal drop of 2 paise at 70.92.

The domestic unit was pressured after official data published on Thursday showed that the growth of central industries plummeted in September.

The production of eight central infrastructure industries contracted 5.2 percent in September, the lowest in the decade, indicating the severity of the economic slowdown. Up to seven of the eight major industries saw a contraction in production in September.

Brent crude futures, the global benchmark for oil, were trading 0.12 percent higher at USD 59.69 per barrel.

The BSE Sensex traded 136.83 points, or 0.34 percent, higher at 40,265.88, and the broader NSE Nifty advanced 33.90 points, or 0.29 percent, to 11,911.35.

Foreign institutional investors bought shares worth Rs 1,870.87 million on Thursday, exchange data showed.

The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.15 percent to 97.20. The yield on 10-year government bonds was 6.45 percent in the morning trade. BAL BAL