On Monday, the Indian rupee has touched its weakest position in nearly nine months, having a strong influence by the dollar demand from domestic oil refiners for import payments as well as bunched up outflows consequent, to last Friday's local forex and bond markets holiday.

The currency has reduced 0.4% to 45.95 per dollar as of 12:02 p. m. in Mumbai whereas the three month forwards increased 0.2% to 46.30, suggested the Bloomberg compiled data.

While commenting on the market fluctuations, a dealer with a private-sector bank has notified that it is quite early to take a call on intervention. Further, he added that the rupee slide sharply at open, but has settled down after that therefore reflected a significant drop.

“The rupee has been the big underperformer since the end of July for a multitude of reasons” includes hedging by importers, poor sentiment and equity weakness”, added Patrick Perret- Green, the Citigroup’s Head of Rates and Foreign exchange in Singapore, in a research note released today. “It’s moved too far. Moreover we have growing concerns about Thailand, from a government perspective and from a global economic exposure one”.

In addition, Perret-Green suggested buying rupee three-month non- deliverable forwards at 46.35 per dollar and selling similar contracts on the baht at 30.05.