Rupee’s biggest loss in seven weeks; closes at 61.8/dollar

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Indian RupeeThe Indian rupee fell the most in seven weeks on speculation importers stepped up dollar purchases to pay month-end bills.

The currency closed at 61.88 per dollar upon falling by 0.8 per cent in Mumbai from its previous close of 61.41, according to prices from local banks. This is the biggest drop since December 16.

“The main reason behind the rupee’s drop today is dollar demand from oil companies to meet their month-end payments,” said Navin Raghuvanshi, a currency trader at DCB Bank Ltd. in Mumbai. The dollar’s strength globally also weighed on the Indian currency, he said.

Since the beginning of this year, the rupee has strengthened 1.89% against the dollar, while foreign institutional investors have bought $1.72 billion during the period from local equity markets and bought $3.05 billion from debt markets.

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