The Indian rupee fell for a second session in a row as dollar demand from state-run banks for oil-and defence-related payments offset a recovery in shares after a five-day losing streak. Traders expect the rupee to remain range-bound in the near-term, with markets also focused on Federal Reserve Chair Janet Yellen's congressional testimony due later on Tuesday.
"We see the dollar-rupee pair trading steady in the near term, largely in the range of a rupee," said Uday Bhatt, senior manager at state-run UCO Bank. The partially convertible rupee ended at 60.12/13 per dollar compared with 60.07/08 on Monday. State-run banks have been mopping up dollars for oil- and defence-related payments in the recent sessions. Some of this demand could be for the government's effort to pay Iran a part of its oil dues, dealers said. In the offshore non-deliverable forwards, the one-month contract was at 60.33/43, while the three-month was at 60.85/95.
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