Rupee declines on dollar demand from oil importers

The Indian rupee fell for a fourth session on early follow-on demand from oil and defence importers, say dealers.

The domestic currency was at 54.30/31 per dollar after opening at 54.18, versus its close of 54.175/185 on Monday.

Reserve Bank of India governor D. Subbarao’s comments on inflation and low chances of further rate cuts are also weighing on the rupee. Most Asian currencies were trading firmer versus the dollar.

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Dealers are awaiting the inflows related to some recent corporate deals, particularly Qatar’s $1.26 billion investment in Bharti Airtel Ltd, which should provide some support for the rupee.

Reuters