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Rupee’s inert reaction to dollar drop confuses bankers; outflows flagged - REUTERS
MUMBAI, May 21 (Reuters) - The Indian rupee's muted reaction in the face of a persistent decline in the dollar has stirred up confusion among bankers, with some citing foreign portfolio and corporate payment-related dollar outflows as reasons for the rupee lagging among peers.
On the day, most Asian currencies rose between 0.1% to 0.6% versus the U.S. dollar but the rupee was little changed at 85.61.
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A similar pattern persisted throughout May, with the rupee declining by about 1% on the month so far even as its regional peers gained. The Korean won, for instance, is up 3.6% on the month and the offshore Chinese yuan has risen about 1% as well.
