Indian Rupee Falls To 5-day Low Against U.S. Dollar

(RTTNews) - The Indian rupee weakened against the U.S. dollar in the Asian session on Wednesday.

In economic news, data from the Ministry of Commerce and Industry showed that the India's wholesale price inflation eased further in April to the lowest level in just over a year amid cheaper costs for primary articles, especially food items.

The wholesale price index, or WPI, rose 0.85 percent year-over-year in April, slower than the 2.07 percent increase in March. Economists had expected inflation to ease to 1.76 percent. On a monthly basis, wholesale prices dropped 0.19 percent from March, when they decreased by 0.26 percent.

Food inflation moderated to 2.55 percent from 4.66 percent in March. Prices for primary articles declined 1.44 percent annually in April, and costs for fuel and power also showed a renewed decline of 2.18 percent.

Signs of easing retail inflation sparked hopes for more rate cuts from the Reserve Bank of India in coming months.

Official data showed India's consumer price inflation eased further in April to the lowest level in nearly six years amid a slower rise in food prices.

Consumer price inflation eased more-than-expected to 3.16 percent in April from 3.34 percent in February.

The expected rate was 3.27 percent. Moreover, this was the lowest since July 2019, when prices had risen 3.15 percent.

Traders will be watching the statements made by Mary Daly, Philip Jefferson, and Christopher Waller, among other Federal Reserve (Fed) officials, later in the day.

Earlier in the session, the rupee traded higher against the greenback, following a tentative ceasefire between India and Pakistan over the weekend.

In the Asian trading today, the rupee retreated to a 5-day low of 85.49 against the U.S. dollar, from an early high of 85.00. At yesterday's close, the rupee was trading at 85.27 against the greenback.

If the rupee extends its downtrend, it is likely to find support around the 86.00 region.

Looking ahead, U.S. MBA mortgage approvals data, Canada building permits data for March and U.S. EIA crude oil data are slated for release in the New York session.