MUMBAI, July 6 (Reuters) - The Indian rupee tracked regional currencies lower on Monday, while dollar demand from local oil companies and related to maturing contracts in the non-deliverable forward market also added pressure on the local unit.
The rupee touched a three-week low of 95.4150 and was down 0.2% on the day.
Locally, traders pointed to dollar bids from importers alongside interbank demand linked to maturing NDF contracts.
The Reserve Bank of India's daily fix, which attracts concentrated buying or selling related to maturing contracts, was hovering at a premium of 0.25/0.50 paisa, signalling heightened demand for dollars.
"Overall, the pair remains biddish and directionally the bias is higher on USD/INR in the absence of central bank pushback via interventions," a trader at a Mumbai-based bank said.
Asian currencies slipped between 0.1% and 0.3%, while the U.S. dollar index steadied near a two-week low as investors scaled back bets on a Federal Reserve rate hike this year.
Investor focus is shifting to the minutes of the Fed's June meeting, due on Wednesday, for clues on policymakers' views on the rate outlook.
"We think that market pricing for US rates are probably too elevated right now, and as such, if macro data validates there is probably space for US rates to move modestly lower over time," analysts at MUFG said in a note.
Interest rate futures are currently pricing about 30 basis points of rate hikes over the remainder of 2026, per LSEG data.
Reporting by Jaspreet Kalra; Editing by Janane Venkatraman and Sonia Cheema
Source: Reuters