Rupee posts weekly fall despite rate hike amid adverse flows, weak sentiment

What happened: The rupee posted a weekly fall despite a rate hike, closing at 96.73 per dollar, near its all-time low of 96.96 hit in May. State-run banks' dollar sales, likely for the RBI, limited the decline. Key numbers: Close 96.73 per dollar. Record low 96.96 in May. Why it matters: Traders cited elevated importer hedging and persistent foreign portfolio outflows from stocks. Analysts polled by Reuters expect the rupee to languish near record lows over the next three to six months.

The rupee posted a weekly fall despite a rate hike, closing at 96.73 per dollar, near its all-time low of 96.96 hit in May. State-run banks' dollar sales, likely for the RBI, limited the decline.

Traders cited elevated importer hedging and persistent foreign portfolio outflows from stocks. Analysts polled by Reuters expect the rupee to languish near record lows over the next three to six months.