According the government data released yesterday, industrial production in November grew by 5.7 per cent compared to a contraction of 3.4 per cent in the same month a year ago.
While retail inflation remained subdued at multi-year low of 3.41 per cent in December.
Dealers attributed the rupee's fall to increased demand for the American unit from importers but the dollar's weakness against some other currencies overseas and a higher opening of the domestic equity market capped the fall.
Meanwhile, the benchmark BSE Sensex rose by 106.92 points or 0.39 per cent to 27,354.08 in early trade.
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