Rupee lower as banks buy dollar

The rupee falls to 60.27/28 from its Wednesday close of 60.14/15, as state-run banks are spotted buying dollars, which traders say is likely for defence and oil-related payments.

Gains in USD/INR come despite positive stocks, with the Sensex up 0.2 percent.

The gap between the spot USD/INR and one-month NDF has widened to around 0.45 rupee on Thursday, much higher than the usual 0.20-.025 rupee spread, suggesting offshore players expect the dollar to gain against the rupee in the near-term.

Asian shares look to extend recent solid gains on Thursday after minutes of the Federal Reserve’s latest policy meeting suggested the Fed may be more cautious towards raising interest rates than markets had thought.

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