Rupee Falls Most in a Week as Importers Step Up Dollar PurchasesNupur Acharya
India’s rupee fell the most in more than a week on speculation importers stepped up dollar purchases to pay bills.
The rupee fell 0.3 percent from Monday to close at 62.3425 a dollar in Mumbai on Wednesday, according to prices from local banks compiled by Bloomberg. That’s the biggest drop since Feb. 9. Indian markets were shut Tuesday for a public holiday. The currency has climbed 1.1 percent in 2015, the best performance in Asia.
“The month-end dollar demand pushed the rupee lower,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. “Importers are rushing a bit to cover the hedges given that the currency market is shut on Thursday for a public holiday.”
Three-month offshore non-deliverable forwards for the rupee fell 0.2 percent to 63.29 a dollar, data compiled by Bloomberg show. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
The yield on the government bonds due July 2024 was at 7.71 percent, little changed from Monday, prices from the Reserve Bank of India’s trading system show. India sold 140 billion rupees ($2.3 billion) of treasury bills at an auction on Wednesday.