India’s rupee fell for a second day, approaching a
record low, before a government report that economists predict will show gross
domestic product rose at the slowest pace since 2009.
Asia’s third-largest economy probably expanded 6.1
percent in the first three months of this year, matching the preceding period’s
pace that was the slowest in 11 quarters, according to the median of 31
estimates in a News survey. The rupee also weakened after the Bank of Spain
said the nation’s economy will sink deeper into a recession, fueling concern Europe’s debt crisis will worsen.
The rupee lost 1 percent to 56.2325 per dollar in
Mumbai, according to data compiled by Bloomberg. It touched a record low of
56.3875 on May 24 and has lost 6.2 percent this month in Asia’s worst currency
performance.
The rupee’s one-month implied volatility, a measure
of exchange-rate swings used to price options, rose 15 basis points, or 0.15
percentage point, to 13.5 percent.
Three-month onshore currency forwards traded at
57.13 a dollar, compared with 56.77 on 29 May, and offshore non-deliverable
contracts were at 57.42 from 56.95. Forwards are agreements to buy or sell
assets at a set price and date. Non-deliverable contracts are settled in
dollars.