Indian Rupee Weakens Against The U.S. Dollar

Indian rupee came off a four-week high and ended lower against the U.S. dollar on Thursday as the dollar index rose amid dollar buying by importers.

 

The rupee weakened 9 paise to close at Rs 83.24 against the U.S. currency on Thursday, according to Bloomberg data. The local currency had closed at nearly four week high at Rs 83.15 on Wednesday.

The dollar index rose 0.2% to 104.56 so far during Asian trade from Wednesday’s close 104.39. The dollar index was at 104.40 as of 03:53 p.m., according to Bloomberg data.

“Factors such as importer’s buying to cover short-term payables, a significant trade deficit of $31.46 billion (compared to $26.3 billion a year ago), and increased gold imports impacting the import cover ratio negatively (monthly import/FX reserves) to just nine months countered the Rupee’s strength,” said Amit Pabari, managing director, CR Forex.

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