USD/INR at 58.90

India’s rupee declined for a third day, the longest losing streak in May, on speculation importers boosted dollar purchases to pay month-end bills.

The rupee gained 2.4 percent in May, the best performance in Asia, on optimism the clearest election verdict in 30 years will allow policy makers to step up efforts to spur economic growth. The Bharatiya Janata Party won 282 of 543 parliamentary seats, more than the 272 needed to form a government on its own, according to results published May 16. That’s the first single-party majority since 1984.

“There is month-end dollar buying from importers, which is pressuring the rupee,” said Vikas Babu, a currency trader with Andhra Bank in Mumbai. “It also declined due to lack of dollar inflows as the U.S. markets were shut yesterday for a holiday.”

Bloomberg

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