The Indian rupee fell the most in three weeks on Tuesday on bunched-up dollar demand from importers, with weakness in emerging Asian currencies adding to losses. Dealers cited thin dollar supply due to the Presidents Day holiday in the United States on Monday. Consistent dollar demand from a large state-run bank, likely to meet the needs of its oil refining clients, also pulled down the rupee, they said.
"INR continues to remain shockingly stable and is trading with a bullish bias, thought this cannot be disentangled from the weak-USD macro environment enough to say that it is on account of Indian-bullish factors," said Sacha Tihanyi, a senior currency strategist at Scotiabank in Hong Kong. The partially convertible rupee closed at 62.20/21 per dollar versus its close at 61.84/85 on Monday. It fell 0.58 percent, its biggest daily fall since January 27. Indian bond and currency markets will be shut on Wednesday for a religious holiday. In the offshore non-deliverable forwards, the one-month contract was at 62.52, while the three-month was at 63.39.
Comments
Comments are closed.