Rupee ends steady on dollar selling by banks

Reuters - The rupee closed steady on Friday as dollar selling late in the day by local banks offset importer demand for the U.S. currency earlier in the session, dealers said.

Rupee forwards were active, with two-week forwards closing steady at 153.10/25 per dollar.

It fell to 153.30/45 earlier in the day.

“There were some dollar sales by local banks possibly from equity-related inflows and some banks want to take positions in the local currency,” said a currency dealer who requested anonymity.

Dealers said the market was waiting for inflows from an up to $1.5 billion borrowing through a sovereign bond issue.

The country has received dollar inflows since the beginning of April, with foreign investors buying equities and government securities.

Foreign investors have net-bought equities worth a net 11.77 billion during the last 21 sessions, taking the year-to-date net foreign inflow into shares to Rs. 14.27 billion.

They also net-bought government securities worth Rs. 1.87 billion in the week ended 12 April, although they have net-sold Rs. 62 billion worth of government bonds so far this year.