Rupee Slips Against Dollar Amid Strong Demand
The Indian rupee slipped to 95.97 against the US dollar in early trade on Thursday, weighed down by strong demand for the dollar.
The domestic unit opened at 95.95 against the US dollar and later quoted at 95.97 compared to Wednesday's close of 95.94.
Dollar sales by state-run banks, reportedly on behalf of the Reserve Bank of India, helped limit the rupee's decline and defend the 96-per-dollar level.
Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors, said the RBI supplied dollars through state-run banks in both spot and forward markets.
The dollar index rose 0.09 percent to 101.54, with the greenback's strength against a basket of six major currencies putting pressure on emerging-market currencies, including the rupee.