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On Friday, We expect Indian Rupee follow the path of south east Asian FX weakness and commence session with weaker note between 74.30-74.37 levels as greenback advanced against a basket of currencies, after data showed on Thursday for producer prices posted their largest annual increase in more than a decade in the 12 months through July, suggesting inflation pressures remain strong.
• India's June industrial output grows 13.6 % (YOY) Vs Analysts polled by Reuters had expected a rise of 13.5% in June.
• India's annual retail inflation eased to 5.59% in July from 6.26% the previous month Vs Analysts in a Reuters poll had predicted annual inflation at 5.78%.
On Thursday India Meteorological Department (IMD) data showed India received 35% less rain than the 50-year average in the week to Aug. 11, with the shortfall as high as 98% in cotton and soybean growing regions in central and western India.
• India is the world's biggest exporter of rice and top importer of edible oils. A drop in production could not only limit rice and cotton exports, but also boost imports of edible oils such as palm oil, sunflower oil and soyoil.
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