The rupee fell 0.4% to 47.695 dollar at the close of Thursday closing. The currency may decline to 47.80 in a week, said traders. It reached 47.41 on August 4, its strongest level since June 12.
The overnight call money rate finished higher at 3.25% against 3.20% previously after it moved in a range of 3.25% and 2.90%.
The RBI under the liquidity adjustment facility (LAF) mopped up 1, 16,170 crore from 47 bids at the one day reverse repo auction at the rate of 3.25%.
Meanwhile, rupee fell the most in a week on speculation some importers took advantage of the currency?s appreciation to a two-month high to buy dollars and after stocks posted their biggest slide in a month.
Some companies are betting rupee gains will be limited as overseas investors pare their holdings following a 61% rally in the benchmark stock index this year, according to Rohan Naik, a currency trader at Standard Chartered Plc. A two-day strike by more than 900,000 bank workers seeking higher wages cut trading volumes, he said.
?Dollar demand has strengthened from importers,? Naik said. ?Volumes are low and the currency market is illiquid because of the strike.?
Indian stock purchases by foreigners that exceeded sales this year by $7.5 billion drove the BSE sensitive index to a 14-month high on August 4.