Indian rupee weakens amid dollar demand

The Indian rupee declined on Thursday, possibly due to increased demand for hedging future dollar liabilities as forward premiums decreased following the central bank’s FX swap announcement.

The rupee fell to 87.07 against the US dollar at 10:43 AM IST from 86.9550 in the previous session due to dollar buying by importers. Traders noted that the currency briefly rose above 86.90 before the reversal.

Attribution: Reuters

Subediting: M. S. Salama