Rupee’s depreciation continues

India\'s rupee completed its first weekly loss since the five days ended March 1 on concern political instability and limited room to lower borrowing costs will derail efforts to revive the economy. The rupee declined 0.6 per cent this week to 54.34 per dollar in Mumbai, according to data. It fell 0.1 per cent yesterday. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, rose 39 basis points, or 0.39 percentage point, to 8.58 per cent this week. The rate climbed 24 basis points yesterday. Prime Minister Manmohan Singh\'s main coalition partner withdrew support this week, threatening the biggest policy revamp in a decade. The Reserve Bank of India, which cut interest rates for a second time this year on March 19, said \'persisting\' inflation curbs scope for further reductions. The currency is particularly vulnerable due to the nation\'s record current-account deficit, according to BNP Paribas Securities India. \"Progress will be difficult and slow and there are unlikely to be any huge reform steps taken,\" Kenneth Akintewe, a Singapore-based fund manager at Aberdeen Asset Management, which oversees $314 billion globally, said. \"The currency will stay range-bound and somewhat volatile,\" he added. Time of oman