India’s rupee fell to the lowest level in more than a month on speculation foreign funds will cut purchases of local assets as oil prices hover near the highest level since May.
The currency declined for a third day after overseas investors slowed net buying of local equities to $56 million on March 1, compared with $133 million on February 29 and $174 million the day before, according to exchange data.
Crude prices have advanced 7.5 per cent this year, reaching a 10-month high of $110.55 a barrel in New York on March 1. Asia’s third-biggest economy imports almost 70 per cent of its energy needs.
GDP rose 6.1 per cent in the three months through December, the slowest pace in more than two years, the government said last week, as Bloomberg stated.
Offshore forwards indicate that the rupee will trade at 50.94 to the dollar in three months, compared with expectations of 50.56 at the end of last week.