India’s Rupee Slips as RBI Lets Banks Resume Offshore Contracts

The rupee ended lower after the central bank rolled back some restrictions it had imposed on currency market transactions, including allowing banks to offer offshore derivatives linked to the currency.

The unit was down 0.4% to 93.4975 per dollar, the biggest drop in a week. The gap between three-month forward points in the offshore and the local market has shrunk to 16 points from about 30 points prior to the Reserve Bank of India’s statement.