Rupee hits three-week low as higher dollar demand weighs

The rupee opened the day at 95.23 a dollar as compared with previous close of 95.18 and depreciated to 95.48 intra-day before retreating a bit at the close of the market.

The Indian currency came under pressure on higher dollar demand as traders chased fresh arbitrage opportunities between the local foreign exchange market and offshore non-deliverable ‌forwards market, market participants said.

The rise in the dollar index also contributed to the rupee’s weakness, they said. The dollar index was seen hovering 0.26% higher at 101.12 level.