Ahmedabad: The rupee declined against the dollar due to a strong demand of US dollar in the Non-Dilivable Forward (NDF) market. Last Monday, the rupee weakened 0.52 percent, which was the biggest fall in two weeks.
A private bank dealer said that this week NDF of about $ 3-4 billion will mature, due to which the demand for dollars is high. The rupee is performing the worst in Asian currencies.
The rupee has fallen by 4.5 percent during the current financial year. In 2025, the rupee will fall by 1.97 percent against the dollar. At the end of December, the central bank had a short position of $ 67.9 billion.
The NDF market was visible high prices and due to good arbitration opportunities, the interest in shopping was increasing, but around 87.30 to 87.35, the Reserve Bank also intervened through government and foreign banks.
The dollar index declined by 0.13 percent due to a slow growth in jobs and an increase in unemployment amid widespread geopolitical uncertainty in US employment data. The decline in yuan is also putting pressure on other Asian currencies amidst the concerns of deflation in China. Due to increase in import duty in April, India has increased the threat of counter -US tariffs, increasing the risk of decline in the price of the rupee.
However, the dealers said that the US payroll figures did not have pressure on the rupee, as the advance book of currency is quite low and it is indicating to the market that there is not much scope for the rupee to strengthen, which is weakening the currency.
A private bank dealer said that the rupee is unlikely to be strengthened until there will be a real flow in the market.
