The rupee fell 0.1 percent to 61.925 per dollar, according to prices from local banks compiled by Bloomberg. The currency dropped for a fourth day, the longest streak since Nov. 12. The RBI will review borrowing costs Jan. 28. Urjit Patel committee set up by the central bank yesterday proposed adopting a 4 percent consumer-price-inflation target by 2016 as part of a monetary-policy change, a shift that could lead to higher interest rates, if accepted.
Three-month offshore non-deliverable forwards fell 0.2 percent to 63.13 per dollar. Forward contracts are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.The outlook for rupee does not look that a good picture.