The Indian rupee fell to a six-week low against the US dollar, with forward premiums at a nadir for three months, as interest rate differences between the countries’ two currencies fell. The rupee’s closed at 82.295 to the dollar on Monday, a 0.16% drop from 82.1625 in the previous session. According to Ritika Chhabra, a quant macro strategist at Prabhudas Lilladher, the Indian central bank is expected to intervene if the rupee falls below 82.5, due to foreign exchange reserves. Exporters are resisting hedging because of lower forward premiums, further exacerbating the rupee’s slide.
