Indian rupee weakens amid dollar demand

The Indian rupee weakened on Monday, pressured by dollar demand from foreign banks. This came as most Asian currencies gained after China’s economic stimulus measures over the weekend boosted risk sentiment.

The rupee was trading at 83.7850 against the US dollar, down 0.1 per cent for the day. Strong dollar bids from a London-based and a New York-based bank pressured the rupee in early trading.

The dollar index was slightly weaker at 100.4, while most Asian currencies gained, led by the Malaysian ringgit and Thai baht, both up 0.5 per cent.

Although the rupee is set for its first monthly gain since June, it continues to lag behind regional peers that have risen between 0.3 per cent and 5.4 per cent this month.

Attribution; Reuters

Subediting: M. S. Salama