Indian rupee weakens 0.3% to 79.69 as oil companies soak up dollars

The rupee snapped a four-day winning streak on Wednesday after hotter-than-expected US consumer inflation data earlier this week bolstered bets of a third large rate hike by the Fed next week

The Indian rupee declined on Thursday due to strong demand for the U.S. dollar from oil companies, while markets braced for a big rate hike from the U.S. Federal Reserve next week.
 

The partially convertible rupee closed down 0.3% at 79.6975 per dollar, having fallen up to 79.7250 during the session.
 

Traders do not expect any intervention till the 79.90 levels, so, based on that, oil companies have stepped in to buy dollars, a foreign exchange dealer at a private bank said.
 

There was a lack of inflows in the market compared to the past few sessions, the dealer added.