Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rupee Snaps 3-Day Gain on Concern Weak Monsoon Will Hurt Growth

Aug. 8 (Bloomberg) -- India’s rupee fell, snapping a three-day advance, on concern deficient seasonal rainfall will curb farm output and hurt Asia’s third-largest economy.

India’s monsoon, which accounts for more than 70 percent of annual rains, was 17 percent below a 50-year average, the nation’s weather bureau said yesterday. Citigroup Inc. lowered its estimate for India’s growth in the fiscal year through March 2013 to 5.4 percent from 6.4 percent, and expects the pace will slow to 4.9 percent should weather conditions worsen, according to a report published today.

“The drought could lead to some near-term weakness” in the economy, said Nick Verdi, a strategist in Singapore at the investment banking unit of Barclays Plc. “This could affect inflows” of foreign capital, he said.

The rupee declined 0.6 percent to 55.4150 per dollar in Mumbai, according to data compiled by Bloomberg. One-month implied volatility, a measure of exchange-rate swings used to price options, rose five basis point, or 0.05 percentage point, to 10.40 percent.

Three-month onshore rupee forwards traded at 56.28 per dollar, compared with 56.13 yesterday, and offshore non-deliverable contracts were at 56.19 from 56.04. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.

To contact the reporter on this story: Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.