Rupee weakened for a second day as international investors pared holdings of the nation?s assets on concern global economic growth is faltering.
The Indian currency lost 0.1% to 44.96 per dollar at close in Mumbai, according to data compiled by Bloomberg. That increased its losses this quarter to 0.8%, the worst performance after the Thai baht among Asia?s 10 most-used exchange rates.
The Dollar Index, which tracks the greenback against the currencies of six major US trading partners, gained 0.8% on Thursday to 75.11, the biggest advance in a week. Offshore forwards indicate the rupee will trade at 45.56 to the dollar in three months, compared with expectations for a rate of 45.49 on Wednesday.
Government securities continued to rule weak on persistent selling by corporates and banks while call rate fell back on the overnight call money market on Thursday on excess liquidity in the system.
The 7.80% government security maturing in 2021 moved down to R96.8925 from R97.00, while its yield improved to 8.27% from 8.25% on Wednesday. The 8.13% government security maturing in 2022 also declined to R98.26, while its yield rose to 8.37% from 8.35%.