Rupee hits three-week low as higher dollar demand weighs

The Indian rupee hit a three-week low, opening at 95.23 per dollar versus the previous close of 95.18 and depreciating to an intra-day low of 95.48 before pulling back slightly at close. The weakness was driven by higher dollar demand from traders chasing arbitrage opportunities between the onshore FX market and offshore non-deliverable forwards, compounded by a 0.26% rise in the dollar index to 101.12.