Mumbai: The rupee is expected to weaken today, tracking the dollar’s strength against some Asian currencies, but likely central bank intervention may check sharp falls.
The dollar rose to a six-month high against the euro, extending its gains from last week as worries about the euro zone economy stalling and a drop in oil prices bolstered investor confidence.
The partially convertible rupee ended at 43.01/02 per dollar on Thursday, a level it last tested on 18July and 1% weaker than Wednesday’s close of 42.65/66. Financial markets were closed on Friday for Independence Day.
Data on Thursday showed the central bank sold $7 billion in intervention in June, the biggest single-month figure since they started publishing data in April 1995.