India's retail inflation rose to 7 per cent in August from 6.71 per cent in July and this was due to higher food prices. In fact, retail inflation has been beyond the Reserve Bank of India's (RBI) tolerance limit of 6 per cent for eight months in a row.
Pradhan flagged concerns over the increasing crude oil prices and its impact on consumers as well as on smart economic recovery.
This simply means that even though the prices of crude oil may continue to rise from the present levels of $60 a barrel, Asian market would continue to get discounts over the prevailing price.
Asian stock market too took a nosedive today, amid panic selling by traders.
Forex traders said the rupee traded in a narrow range ahead of the release of retail inflation and factory output data.
A strengthening dollar against major currencies overseas and weak domestic equity market weighed on the local unit, forex traders said. However, softening crude oil prices restricted the rupee's fall, they added.
Forex traders said rupee is expected to trade in a narrow range as market participants will keep a close watch on the Union budget this week, that could trigger volatility in the local unit.
Brent crude, the global oil benchmark, surged over 5 per cent on Thursday over renewed tensions in the Middle East after Iran shot down a US drone.
The Sensex of the BSE opened at 39,158.22 from its previous close at 39,140.28 on Thursday, as markets remained closed on Friday on the account of Good Friday
Crude oil prices rose 0.42 per cent to Rs 4,078 per barrel in futures market Friday as speculators created fresh bets, taking positive cues from domestic markets.
