Mumbai: The rupee fell to its lowest in 20 months on Thursday, weighed down by concerns over the government`s taxation policies that threaten to reduce the allure of local assets for foreign institutions, while a global debt sell-off also hurt.
Traders said the uptick in non-deliverable forwards traded in Singapore was hitting sentiment for the local unit and prompting custodian banks to sell the rupee.
The one-month NDF was at 64.35/35 versus Wednesday`s close of 64.02. The partially convertible rupee was trading at 63.91/92 per dollar by 11:32 a.m., after hitting 64.02, its lowest since Sept. 13, 2013. The pair had closed at 63.54/55 on Wednesday.
Most emerging Asian currencies lost ground on Thursday as a global bond rout lifted government bond yields across the region.
Traders are now waiting to see if the Reserve Bank of India steps in to prevent a further sharp fall in the currency.
