Thursday, the Indian rupee opened lower against the US dollar and hit a low of 50.69 at 11:35 pm ET. If the Indian currency weakens further, it may likely target the 51.1 level. At yesterday's New York session close, the dollar-rupee pair was quoted at 50.53.

Investors now look forward to India's weekly inflation report, which is due for release today. For the first time since March 1976, analysts expect India's inflation rate to enter negative territory due to negative base effect and supply side issues, when the government releases its weekly data today.

However, concerns of deflation for a longer period are ruled out and the negative impact if any is likely to remain marginal, as food prices and consumer price inflation still remain high. In fact, India's chief statistician Pronab Sen expects the negative inflation to have a positive impact on growth.

The inflation rate, which has been steadily declining over the past six months, fell drastically to an all-time low of 0.44 per cent for the week ended March 7.

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