Rupee off one-week low as custodial banks sell dollars

The rupee is off one-week low hit in early session as dollar selling by foreign banks on custodial flows suspected, dealers say. The rupee is at 61.15/16 after hitting an intraday low of 61.40. The unit closes at 60.95/96 on Wednesday.

The rupee is off one-week low hit in early session as dollar selling by foreign banks on custodial flows suspected, dealers say. The rupee is at 61.15/16 after hitting an intraday low of 61.40. The unit closes at 60.95/96 on Wednesday.

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Foreign fund inflows into stocks, bonds have been the key driver of INR; totalling $3.6 billion in March.

Most other Asian currencies like the Indonesian rupiah and the Taiwan dollar are weaker against the dollar.

The dollar traded at two-week highs against a basket of major currencies early on Thursday, having posted solid gains after comments from Fed Chair Janet Yellen prompted markets to bring forward interest rate hike expectations.

(Reporting by Subhadip Sircar)