Indian rupee weakens

The Indian rupee weakened marginally on Tuesday as a sharp sell-off in domestic shares raised concerns about foreign investor outflows at a time when the country is looking to narrow a record current account deficit. "Foreign banks were on the dollar sell side today. There was good demand from oil in the first half and custodian banks in the second half of trade," said Hari Chandramgethen, head of foreign exchange trading at South Indian Bank.
The partially convertible rupee closed at 54.58/59 per dollar marginally weaker compared with its Monday's close of 54.56/57.
In the offshore non-deliverable forwards, the one-month contract was at 54.89 while the three month was at 55.53.
In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.7550 with a total traded volume of $3.86 billion.