The Indian rupee retreated from near six-month highs on Monday afternoon after reports of fresh border tensions with China came to light, said traders. Indian Army said it had foiled an attempt by Chinese troops to change the status quo on LAC in a fresh flare-up.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The partially convertible rupee was trading at 73.62/63 per dollar by 0707 GMT, compared with its previous close of 73.39 on Friday and much weaker than the 73.25 level hit earlier in the session - its strongest since March 5.

"We have seen sharp gains in the rupee last week and early today, so the fresh round of border issues meant an immediate sell trigger for most," a trader with a private bank said.

Earlier in the day, the rupee gained tracking losses in the dollar and a rise in Asian peers. The dollar was poised to register its fourth straight monthly drop in August.

Traders said month-end dollar demand from importers also weighed on the rupee and that the local currency could continue to see a 73-73.80 range in the absence of dollar buying intervention by the central bank.

See Zee Business Live TV Streaming Below:

The June-quarter GDP data due to be released at 1200 GMT is being closely monitored for further direction.