India’s Rupee Declines Most in a Week as Importers Buy DollarsKartik Goyal
India’s rupee fell the most in a week on speculation importers are stepping up dollar purchases to settle their month-end bills.
The rupee weakened 0.2 percent to 63.6050 a dollar in Mumbai, the most since June 15, according to prices from local banks compiled by Bloomberg. The currency snapped a four-day advance. Sovereign bonds declined for a second day.
“Importers are buying dollars and that is getting reflected in the rupee,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. Importers find the current dollar levels good to meet their immediate needs, he said.
The yield on the notes due in July 2024 rose two basis points to 7.92 percent, according to prices from the Reserve Bank of India’s trading system. That on the new 10-year securities maturing in May 2025 increased one basis point to 7.75 percent.
The rupee climbed 0.8 percent in the five days ended June 19, its best week in three months, while the 2024 debt completed its biggest weekly advance since it was first issued in July. The gains came as a pickup in seasonal monsoon rains eased concern inflation will accelerate and the Federal Reserve signaled it will raise U.S. interest rates gradually, reducing chances of a sudden outflow from emerging markets like India.
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