Rupee hits 6-week low in early trade

The rupee hit a one-and-a-half-month low of 54.73 in opening trade on the back of weak growth data for the October-December quarter and tracking losses in the euro.

The pair is currently trading at 54.55/56 versus its previous close of 54.36/37.

India's economy grew at a worse-than-expected 4.5 per cent in the quarter ended December, hurt by a slowdown in agriculture, mining and manufacturing, government data showed on Thursday.

Traders say the clarification on the tax residency certificate by Finance Minister P Chidambaram has helped calm foreign investor nerves and is now pushing down the dollar.

Gains in the dollar versus euro and other Asian currencies will however keep the upward pressure on the pair.

The dollar/rupee pair is likely to move in a 54.40 to 54.80 range during the rest of the session.

Copyright @ Thomson Reuters 2013