India’s rupee completed its biggest weekly decline in 15 months, on speculation importers stepped up dollar purchases amid an increase in oil prices. The local currency reached the weakest level in a year after crude climbed 2 percent from Sept. 2, raising costs for importers in a nation that brings in more than 75 percent of its fuel requirement from abroad. The Dollar Index, which tracks the currency against six major trading partners, rose a second week. “There’s genuine demand for dollars from oil companies, which is putting pressure on the rupee,” said Paresh Nayar, head of money markets and currency at Mumbai-based FirstRand Ltd. “The second reason is the dollar has rallied.” The rupee dropped 0.8 percent today and 1.7 percent this week to 46.5650 per dollar at the 5 p.m. close in Mumbai, the steepest weekly fall since the period to May 21, 2010, according to data compiled by Bloomberg. It touched 46.59 today, the lowest level since Sept. 9, 2010. Offshore forwards indicate the rupee will trade at 47.11 to the dollar in three months, compared with expectations of 46.75 yesterday and 46.31 a week ago. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars. To contact the reporter on this story: Khalid Qayum in Islamabad at kqayum@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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