The Indian rupee was pushed to one-week lows on Tuesday on the back of a broad dollar rally and losses in domestic shares which raised expectations for sustained risk aversion in global markets. The partially convertible rupee closed at 46.91/92 per dollar, after hitting 46.98, its weakest since August 12 and 0.55 percent below 46.65/66 at close on Monday. The rupee traded in a range of 46.70-46.98 during the day.
"The euro and stocks came down and that coupled with some corporate dollar buying pushed the rupee down to these levels," said A. Ajith Kumar, a senior foreign exchange dealer at Federal Bank in Mumbai. One-month offshore non-deliverable forward contracts were at 47.18, weaker compared to the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX closed at 46.9475 and 46.9375 respectively, with the total traded volume on the two exchanges at about $4.4 billion.