Azernews.Az

By Bloomberg

India’s rupee headed for its biggest decline in a week on speculation importers are stepping up dollar purchases to settle their month-end bills.

The rupee weakened 0.2 percent to 63.6150 a dollar as of 10:49 a.m. in Mumbai, the most since June 15, according to prices from local banks compiled by Bloomberg. The currency snapped a four-day advance. Sovereign bonds dropped for a second day.

“Importers are buying dollars and that is getting reflected in the rupee,” said Ankur Jhaveri, co-head of currency and rates at Edelweiss Financial Services Ltd. in Mumbai. Importers find the current dollar levels good to meet their immediate needs, he said.

The yield on the notes due July 2024, the current 10-year benchmark, rose two basis points, to 7.92 percent, according to prices from the Reserve Bank of India’s trading system. The rate on the new 10-year securities due May 2025 also increased two basis points to 7.76 percent.

The rupee climbed 0.8 percent in the five days ended June 19, its best week in three months, while the 2024 debt completed its biggest weekly advance since it was first issued in July. The gains came as a pickup in seasonal monsoon rains eased concern inflation will accelerate and the Federal Reserve signaled it will raise U.S. interest rates gradually.