Indian rupee hits 11-month low

Reuters: The Indian rupee is at 56.47/48 versus its close of 56.38/39 on Thursday, after falling to as low as 56.60 in opening deals, its weakest since 29 June 2012.

Dealers say that the governor of the Reserve Bank of India’s comment on Thursday that inflation still remained high and it will take into account the current account deficit for policy decisions weighs as it dampens rate-cut hopes in June’s policy review.Domestic shares are also down 0.8% on the back of the governor’s comments. Traders, however, expect some resistance as the dollar trades were weaker against the euro and other Asian currencies.

The gross domestic product data scheduled to be released at 0530 GMT will be the next focus and traders are hoping weaker growth will push the RBI to cut interest rates yet again in June.