Mumbai: India's rupee declined from the highest level in more than three months on speculation importers stepped up dollar purchases to benefit from the exchange rate.
The rupee declined 0.1 per cent to 53.1650 per dollar in Mumbai, according to data. It touched 52.8900 earlier, the strongest level since October 17. One-month implied volatility, a gauge of expected exchange-rate swings used to price options, rose 11 basis points, or 0.11 percentage point, to 9.58 per cent.
The currency had strengthened earlier on optimism the nation's largest state asset sale in a year will attract foreign capital. Ministers approved an offering of government shares worth Rs120 billion ($2.3 billion) in NTPC, India's biggest power producer, disinvestment minister Ravi Mathur said in New Delhi.
The sale will open today, he said. Global funds poured $4.7 billion into Indian stocks this year, exchange data show.