Rupee depreciates against dollar

August 10, 2012 by sknlakshmi

The Indian rupee shed previous gains to commence lower on Friday tracking regional shares that snapped a four day rally. Yesterday, rupee rose in line with emerging currencies and other risk assets, but an unexpected slump in domestic industrial output capped gains by reinforcing concerns about domestic growth.

Weakness continued on domestic bourses in morning trade as lower Asian stocks dampened sentiment. Asian shares dropped on Friday, after the latest data showed China's trade surplus unexpectedly narrowed in July as exports barely grew from the year-earlier month and imports increased at a smaller rate.

Meanwhile, the euro remained under pressure in Asia on Friday, though it was off its lows the day before as hopes for progress in Europe's debt crisis offset some of the worries about slowing euro zone growth.