Rupee falls to two-week low at ₹95.3675 as dollar demand persists

The rupee fell to a two-week low at ₹95.3675 per dollar on Thursday as persistent dollar demand and likely overseas debt-repayment outflows outweighed modest Reserve Bank of India intervention. The currency was down 0.15% from its previous close of ₹95.22, traders said.

Rupee reaches a two-week low as dollar demand persists

Traders quoted the rupee at ₹95.3675 per dollar, compared with the previous close of ₹95.22. The move represented a 0.15% fall from the prior session.

Dollar demand gathered around the daily reference rate, traders said, contributing to the currency’s decline.

Intervention cushions the rupee's fall as forward-market selling stays weak

Mild intervention by the Reserve Bank of India helped contain the rupee's losses, traders said. The currency's movement was therefore checked even as dollar buying remained present.

A trader at a Singapore-based hedge fund said selling interest in the dollar-rupee pair was weak in the non-deliverable forward market. The trader said intervention was pushing the pair lower in that market.

Dollar demand comes from manufacturers and jewellers as Asian currencies rise

A trader at a foreign bank said dollar buying remained persistent among clients in sectors including electronics manufacturing and jewellery.

Traders also pointed to likely outflows linked to overseas debt repayments.

The Federal Reserve left policy rates unchanged. Traders said the decision lifted most Asian currencies but did not lift the rupee.

Earlier rise to ₹94.32 loses ground after regulatory measures and IPO inflows

Traders linked the rupee's earlier rise to a series of regulatory measures and inflows associated with a large domestic IPO. They said those gains had since started to fade.

Emkay Global analysts said intervention and regulatory constraints had supported spot stability, but added that this did not necessarily represent improved underlying confidence in the rupee.