 "Rupee falls for third day, foreign fund inflows key")
The rupee weakened for a third session on Wednesday, falling below the 61-mark for the first time in more than a month, hurt by good demand for the greenback from importers and continued weakness in Asian currencies.
Most emerging Asian currencies fell, as the Chinese yuan extended its recent decline to a 16-month low, while the Indonesian rupiah touched its weakest level in around seven weeks due to increasing month-end dollar demand.
Traders said the direction of foreign fund flows in the near term would remain crucial to determine the rupee's fortunes, as India continues with its five-week elections for which the outcome will not be unveiled until mid-May. For now, foreign investors have remained buyers with net purchases of a modest $30.80 million on Tuesday, marking a third consecutive day of inflows.
The partially convertible rupee closed at 61.07/08 a dollar, compared with Tuesday’s close of 60.76/77. The unit fell as low as 61.19 during intra-day trades, its weakest since March 21.
Most emerging Asian currencies fell, as the Chinese yuan extended its recent decline to a 16-month low, while the Indonesian rupiah touched its weakest level in around seven weeks due to increasing month-end dollar demand.
Traders said the direction of foreign fund flows in the near term would remain crucial to determine the rupee's fortunes, as India continues with its five-week elections for which the outcome will not be unveiled until mid-May. For now, foreign investors have remained buyers with net purchases of a modest $30.80 million on Tuesday, marking a third consecutive day of inflows.
The partially convertible rupee closed at 61.07/08 a dollar, compared with Tuesday’s close of 60.76/77. The unit fell as low as 61.19 during intra-day trades, its weakest since March 21.