Indian rupee: Rupee loses nearly 50 Paise in a day, closes at 87.33

Maturities in the non-deliverable forwards (NDF) market also pressured the currency that has been buffeted by foreign fund sales of local equities since late September.

At 87.33/$1, the rupee’s decline was worth nearly 50 paisa, compared with 86.87 per dollar at the end of trading the previous day.

The rupee had opened at 87.22 per dollar, and other Asian currencies also weakened even as the dollar index was 103.7, LSEG data showed. Asian currencies were pressured due to weak economic data from China, traders said.

“The rupee weakened because of an increase in dollar demand from oil companies, as Indian companies have started buying oil from the US,” a trader at a private bank said.

Agencies

India committed to procure more oil and natural gas from the US when Prime Minister Narendra Modi met US President Donald Trump in February. Subsequently, the US exported about 3,57,000 barrels per day of crude to India in February, compared with exports of about 2,21,000 barrels per day last year, Reuters said.”After a stronger close on Friday, the rupee slipped to 87.20/$1 levels in the NDF market. After that slip, there was some short covering done because of which the rupee opened weaker,” said Anil Bhansali, head of treasury, Finrex Treasury Advisors.