Rupee dips most in 11 weeks on dollar buying talk

The rupee fell the most in 11 weeks on speculation local companies stepped up dollar purchases to buy raw materials, taking advantage of a recent decline in commodity prices.

The currency has weakened 1.7% this month as the UBS Bloomberg Constant Maturity Commodity Index retreated almost 10% from a record intraday high on April 11.

The rupee dropped 0.7% to 44.9975 per dollar at the 5 pm close in Mumbai. That is the biggest loss since February 24. The unit has weakened 0.9% this quarter.

The rupee’s decline was limited as a government report showed industrial production grew at the fastest pace in five months in March. Offshore forwards indicate the rupee will trade at 45.74 to the dollar in three months.