Rupee ends steady; State bank sells dollars

Reuters: The rupee ended steady on Thursday as importer dollar demand was offset by inward remittances and after a State-run bank pegged the currency against the dollar at 133.60 to maintain the exchange rate steady, dealers said.

The spot rupee ended steady at 133.60 on Thursday.

“(Importer) demand (for dollars) was offset by (inward) remittances ahead of the long weekend and being the month-end,” said a currency dealer asking not to be named.

One of the two State banks, through which the Central Bank usually directs the market, sold dollars at 133.60 to keep the rupee steady, they said.

On Tuesday, one of the two State banks, through which the Central Bank usually directs the market, cut the currency’s peg against the dollar by 10 cents to allow the exchange rate to appreciate to 133.60.

Markets will be closed on Friday for a Buddhist religious holiday.

Some dealers expect the currency to be less volatile amid a possible mild appreciation until the 17 August Parliamentary elections.