India’s rupee fell on speculation importers were buying dollars to benefit from a more favorable exchange rate after yesterday’s biggest rally in almost a week. The currency declined 0.1 percent to 55.0525 per dollar as of 10:09 a.m. in Mumbai, according to data compiled by Bloomberg, after advancing 0.4 percent yesterday, the most since Jan. 2. Losses in the rupee will be limited as exporters are likely to sell the greenback around 55.10 and as foreign investors may buy the nation’s equities, according to Corporation Bank Ltd. “We are seeing consistent demand for dollars from oil importers,� said Sudarshan Bhatt, chief currency trader at the state-run lender in Mumbai. “The rupee is likely to stay in a relatively narrow range today.� Global funds poured about $1.1 billion into Indian stocks this month through Jan. 7, adding to net purchases of $24.5 billion in 2012, exchange data show. The BSE India Sensitive Index (SENSEX) of shares rose 0.3 percent today and reached a two-year high two days ago. One-month implied volatility in the rupee, a gauge of expected moves in exchange rates used to price options, was little changed at 9.62 percent. Three-month onshore rupee forwards traded at 56.02 per dollar, compared with 56.01 yesterday, according to data compiled by Bloomberg. Offshore non-deliverable contracts were at 55.95 versus 55.98. 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: Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.net To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net Q

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