Indian Rupee falls

India’s rupee fell toward a one-week low as a report showing a surge in new-home purchases in the US boosted the dollar. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, rose to four-year high after data showed yesterday that US new-house sales increased to the most since 2008 in August. Rupee losses were curbed by optimism India’s relatively high yields will attract investors, according to DCB Bank Ltd. Ten-year local sovereign notes pay 8.48 per cent, compared with 2.56 per cent on similar-dated Treasuries. The rupee dropped 0.1 per cent to 61.0225 per dollar as of 10:30 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg. It fell to 61.0375 earlier, approaching yesterday’s low of 61.05 that was the weakest since Sept. 18. One-month implied volatility in the rupee, a gauge of expected moves used to price options, fell seven basis points, or 0.07 percentage point, to 6.57 per cent. Three-month offshore non-deliverable forwards fell 0.2 per cent to 61.91 per dollar, according to bloomberg.com