Rupee falls 36 paise after RBI rolls back some forex curbs

MUMBAI The rupee weakened 36 paise Tuesday to close at 93.49/$, weighed down by a partial regulatory rollback on measures that curbed lenders’ exposure to overseas currency derivatives trades. Uncertainty around US-Iran talks also weighed on the unit, reports Our Bureau.

The currency had closed Monday at 93.13/$. The rollback came after markets ended trading Monday. Bank treasury heads said they remain cautious and are holding back from offering non-deliverable forward (NDF) contracts to corporates, as RBI is likely monitoring such trades. The dollar-rupee forward premiums rose, increasing hedging costs, with the 1-year forward yield up 10 basis points at 3.10%.