Rupee Sees Worst Fall in 2 Weeks, Closing at 87.34 Against the Dollar

The rupee fell the most in two weeks, weakening by 0.52 percent against the dollar on Monday due to strong demand for dollars in the non-deliverable forward (NDF) market.

- AATHIRA VARIER

The Indian unit closed at 87.34 per US dollar, compared to the previous close of 86.88. Dealers said intervention by the Reserve Bank of India (RBI) helped cut losses intraday, though the rupee weakened again during the closing hours.

"There are NDF maturities of around $3-4 billion this week, causing persistent dollar demand. However, there was RBI presence in the morning around the 30-35 levels. But, towards the evening, they didn't intervene, which is why the rupee ended lower," said a dealer at a private bank.