Rupee weakens for third session as importers step up dollar bids, foreign outflows bite

The rupee weakened for a third consecutive session as importers stepped up their dollar bids, while foreign outflows added to pressure on the currency.

Importer demand weighs on the rupee

Higher demand for dollars from importers contributed to the rupee’s latest decline. The move marks a continuation of the currency’s weakness across three trading sessions.

Foreign outflows add pressure

Foreign outflows were another factor weighing on the rupee. Together with increased importer demand for dollars, the outflows shaped the currency’s latest move and remain central to the reported market pressure.

The session underscores the competing forces affecting the rupee: domestic demand for dollars from importers and selling pressure linked to foreign outflows.