Indian rupee weakens despite govt steps as factory output drops

MUMBAI: The Indian rupee opened weaker on Tuesday on the back of a contraction in factory output growth in June, with the government's additional measures to curb the current account deficit and attract foreign fund inflows having little impact.

Traders said the measures were largely in line and there was scepticism about whether these foreign fund flows would actually come in.

India's industrial production contracted a higher-than-expected 2.2 percent in June from a year earlier, government data showed on Monday.

The partially convertible rupee was trading at 61.52/53 per dollar, weaker than its close of 61.2750/2850 on Monday and not far from a record low of 61.80 hit last week.