Rupee ends marginally lower on dollar demand from banks

Reuters: The rupee ended weaker on Monday as dollar demand from banks and importers surpassed selling of the greenback by exporters, dealers said.

The spot rupee ended at 153.05/10 per dollar, compared with Friday’s close of 152.80/90.

“The demand (for dollar) was there today and a foreign bank was buying dollars, probably to service takeovers,” said a currency dealer requesting anonymity.

Dealers said the rupee was under pressure due to high dollar demand for some equity-related transactions.

Last week, diversified conglomerate Hayleys Plc said it purchased 61.73% of Singer Sri Lanka Plc for Rs. 10.9 billion ($ 71.27 million) from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings .

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.