Mumbai: The rupee was down on Friday due to dollar demand from oil importers and a few foreign banks, with a reversal in domestic equities adding to pressure on the local currency, which is on course for its steepest annual fall since 2008.
At 3:07 pm, the rupee was at 53.30/31 to the dollar, down 0.4% from Thursday’s close of 53.07/08.
Traders said any further decline in the rupee was unlikely to be sharp as most expect the central bank to intervene to support the local currency. The Reserve Bank of India is suspected to have sold dollars on Wednesday and Thursday to shore-up the currency.
Oil is India’s biggest import item and consequently local refiners are the biggest buyers of dollars in the domestic currency market.