The rupee weakened to its lowest level in three weeks on Thursday as large dollar demand from oil companies.
Traders said oil firms, the largest buyers of dollars in the domestic currency market, stepped up purchases hurting the local unit as oil prices held on to gains.
Oil held above $113 a barrel as Chinese economic data signaled stabilization in the economy of the world's second-largest oil consumer while concern over supplies in the Middle East provided support.
“There was good buying from oil companies. Some stop-losses were also triggered around 53.20 levels, so tomorrow we may see the pair rising to 53.60,” said Hari Chandramgathan, a senior forex dealer with Federal Bank.
“Broadly, I am expecting a 53.10 to 53.60 range tomorrow,” he said, adding there was also some buying seen from gold and defence firms which may continue on Friday.
Reuters
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