India’s rupee fell the most in almost a week on speculation importers are boosting dollar purchases to pay month-end bills.
The currency weakened 0.2 percent, the most since Oct. 20, to 64.9650 a dollar in Mumbai, prices from local banks compiled by Bloomberg show. A gauge of dollar strength completed its longest winning streak since Jan. 26 on Friday.
“Demand for greenback from importers and recent gains in the dollar are weighing on the rupee,” said Gaurav Sharma, a senior currency analyst at Religare Commodities Ltd. in Noida, near New Delhi. “The currency continues to face strong resistance at the 64.70-per dollar level and may stay in a 64.70-65.20 range for the next eight to ten sessions.”
Asian currencies retreated Monday after China’s decision to cut interest rates for a sixth time since November on Friday heightened concern about growth in the region’s biggest economy.
The rupee has climbed 1 percent this month after rallying 1.4 percent in September, which was the best performance among 24 emerging-market exchange rates tracked by Bloomberg. That’s put the currency on course for its biggest two-month advance since March 2014.
The yield on India’s 10-year sovereign bonds rose 3 basis points to 7.61 percent, according to prices from the central bank’s trading system.