India rupee on Wednesday snapped a four-day gaining streak to close at 95.74 a dollar, 15 paise weaker than the previous close amid rising dollar demand from importers ahead of the end of the second quarter.
The broad-based dollar strength also weighed on the local currency.
The rupee opened the day a tad stronger at 95.56 a dollar as concerns over crude supply eased driven by reports that the Strait of Hormuz could reopen soon. However, local dollar demand put pressure on the currency, traders said.
“Markets are also beginning to price in a rate hike from the RBI, HDFC Securities said in its daily report.
Meanwhile, the dollar index rose over 1% since the US Federal Reserve increased rates last week while investors are expecting further tightening. Asian currencies also fell 0.1% to 0.3% Wednesday.
