Rupee drops for seventh week on global concerns

Rupee drops for seventh week on global concerns

Mumbai: The rupee declined for a seventh week, the longest stretch in more than two-and-a-half years, on speculation that losses in financial markets will widen as a US rescue package is delayed in Congress.

The rupee declined 5.6% in September, headed for the worst month since the Asian financial crisis in 1997, as global investors sold emerging market assets.

The currency approached the lowest level in two years as funds abroad dumped more than half of the local shares they purchased in 2007.

The rupee also fell on speculation that refiners bought foreign currency to settle overseas bills.

“The rupee is weighed down by the global turmoil and the increasing uncertainty," said Roy Paul, assistant manager of treasury at Federal Bank Ltd in Kochi. “Importers’ dollar demand is strengthening and that is adding more pressure."

The rupee declined 1.5% this week to 46.5475 against the dollar at close in Mumbai, according to data compiled by Bloomberg.