Rupee Has Longest Losing Streak in Five Years as Stocks Retreatby
Rupee fell 0.1% after gaining as much as 0.3% earlier
Currency in longest losing streak since November 2011
India’s rupee fell for an eighth day, the longest losing streak since November 2011, on speculation oil companies stepped up dollar purchases to make overseas payments and local stocks fell.
The rupee declined 0.1 percent at 67.4950 per dollar in Mumbai, prices from local banks compiled by Bloomberg show, after rising as much as 0.3 percent earlier. The benchmark S&P BSE Sensex index of shares fell 0.3 percent, after advancing as much as 0.9 percent.
“Dollar demand from oil companies and equities turning negative weighed on the rupee,’’ said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. The rupee is expected to be weaker going forward as the expected increase in interest rates by the U.S. will keep the pressure on the emerging markets, he said.
Edelweiss forecasts the rupee will fall to 67.80 against the dollar by the end of June.
The Indian currency has declined 1.4 percent in the eight days to Monday and has weakened 2 percent this year in Asia’s worst performance. The rupee gained earlier as exporters were seen selling dollars and a gauge of the greenback weakened.
The yield on notes due January 2026 fell one basis point to 7.46 percent, prices from the Reserve Bank of India’s trading system show.