Rupee Crumbles 25 P to 64.08 a Dollar
The Indian rupee reversed its recent appreciating trend to decline the most in five weeks, with traders rushing to sell the local unit amid rising geopolitical tensions with China. The rupee on Thursday lost about 0.40% or 25 paisa to close at 64.08 a dollar, the biggest fall since July 3 this year, show data from Bloomberg. “The rupee has weakened sharply following the escalation of geo-political tensions,” said Sajal Gupta, head of forex and rates at Edelweiss Securities. “Traders appear to have reversed their short positions in the USD/INR pairing.” After the rupee’s rise last week, many traders went to short sell the dollar against the local unit. With the sudden rise in geopolitical tensions that could threaten economic prospects, traders may have exited such positions. “A sudden risk-off sentiment has led to the rupee’s loss,” said Anindya Banerjee, currency analyst at Kotak Securities.