Weakness in rupee continues, RBI may intervene in afternoon trades

At 12:05 pm rupee was trading at Rs 63.39 a dollar versus pervious close of Rs 62.85

The weakness in the rupee continues in afternoon trades due to persistent dollar demand by importers.

 

In early trades on Tuesday the rupee was trading weak tracking the Non-Deliverable Forwards (NDF) market.

 

At 12:05 pm the rupee was trading at Rs 63.39 compared with previous close of Rs 62.85 per dollar.

 

The demand from importers is expected to intensify as the month proceeds. Besides that there are also uncertainties on the outcome of the US Fed meeting.

 

Currency dealers expect the Reserve Bank of India (RBI) to intervene through state-run banks later during the day to arrest the depreciation.