Indian rupee hits a one-week low against the US dollar of 61.9650 versus its close of 62.07/08 on Wednesday as custodian banks sell the greenback. Currently the pair is trading at 62.02/03.
Traders say dollar selling by custodian banks likely on behalf of clients looking to invest in the government debt market is hurting the dollar/rupee.
India's 2027 government bonds jump after RBI deputy governor H. R. Khan says debt switch may not happen this fiscal year. The benchmark 10-year paper trading down 2 bps at 8.78 percent.
Traders will continue to monitor shares for cues on foreign fund flows as well. The main share index currently up 0.1 percent but trading choppy ahead of the start of the results season with Infosys due to report earnings on Friday.