The rupee fell for a third consecutive week against the US dollar on sustained demand for the American currency from banks and oil importers.
The rupee on Thursday lost 37 paise to close at an over 3-month low of 52.15/16 against the US dollar. The domestic currency opened at 52.15 and went to the level of 51.95 and ended the day higher at 52.07/08 to the dollar, but 1.45% weaker from last week’s closing of 51.30.
“The outlook for the rupee remain weak over the next month as dollar inflow is not likely to improve in the near future,” said Aspy Bharucha, president, Vadilal Forex. “For the next one month rupee can trade in the range of 51.50-53.”
He said trade deficit will weaken the rupee. India’s trade deficit was at $184.9 billion in the last fiscal year primarily due to a higher crude oil import bill. Though experts agree that rupee will move downward but they also believe it would not go to 54 against the greenback.
“Rupee is unlikely to see 54 level because the Reserve Bank of India (RBI) is not comfortable seeing rupee at that level and it may intervene to defend it,” said Pramit Brahmbhatt, CEO Alpari Financial Services-India.