The rupee hit a one-month low and saw its biggest single-day decline in nearly one-and-a-half months on Monday, tracking weakness in other Asian currencies, while dollar demand from custodian banks due to the fall in the share market also hurt. The wholesale price inflation eased to its lowest level in nearly five years in August, but the central bank is likely to keep interest rates on hold later this month to prevent a revival in price pressures once the economy gains momentum. Asian currencies took a hammering on Monday and the dollar further strengthened after data out on Saturday showed China’s factory output grew at the weakest pace in nearly six years in August, and growth in other key sectors also cooled. “We are seeing some kind of convergence between the rupee and other falling Asian currencies considering that the rupee has been an outlier in this space so far,” said Anindya Banerjee, a currency analyst at Kotak Securities, a brokerage in Mumbai.
http://finance.yahoo.com/news/rupee-falls-tracking-weaker-asian-043423625.html
