By Anil Varma Dec. 21 (Bloomberg) -- India’s rupee fell for a second day on speculation local importers were stepping up dollar purchases amid expectations the greenback will add to this month’s gains versus the major currencies. The Dollar Index, which the ICE uses to track the greenback against the currencies of six major U.S. trading partners, advanced in each of the last three weeks, last week jumped the most in six months after the Federal Reserve said the world’s largest economy was improving. A Standard & Poor’s credit rating downgrade for Greece and Dubai World’s plan to restructure about $22 billion of debt cooled demand for emerging-market assets. “The dollar has been strengthening in recent weeks and that trend may continue ahead of the year-end,” said Roy Paul, assistant manager of treasury at Federal Bank Ltd. in Mumbai. “Dollar demand from importers is likely to pick up.” The rupee slid 0.2 percent to 46.8025 per dollar as of 10:17 a.m. in Mumbai, according to data compiled by Bloomberg. The currency, which has appreciated 4 percent this year, touched a three-week low of 46.92 on Dec. 18. Offshore contracts indicate bets the rupee will trade at 46.86 in a month, compared with expectations of 46.83 at the end of last week. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency. To contact the reporters on this story: Anil Varma in Mumbai at avarma3@bloomberg.net.

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