Rupee ends little changed

Friday, 9 August 2013 00:00 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee ended little changed on Thursday as dollar sales by exporters and banks offset importer demand for the greenback. Some dealers said they moved to one-day forwards instead of spot trade after the Central Bank’s earlier direction to banks not to accept bids above Rs. 131.60 per dollar. The one-day forward ended slightly weaker at 131.73/75 per dollar from Wednesday’s close of 131.72/78. Central Bank officials were not available for comment. Dealers said the pressure on the currency remained as exporters adopted a wait-and-see approach. The rupee has fallen around 4% since 7 June, as foreign investors started to pull out of Treasury bonds due to a rise in US Treasury yields. Data from the Central Bank, which has stopped publishing foreign holdings in long term T-bonds separately since 28 June, showed total foreign holdings in Government securities rose 1.2% between 5 June and 2 August, which currency dealers attributed to foreign buying in short-term T-bills. Dealers expect the rupee to move in a 131.50 to 132 range in the short term and continue to depreciate unless the Central Bank steps in or dollar inflows increase significantly. Currency markets will remain closed on Friday to mark Id-Ul-Fitr or Ramadan festival and trading will resume on Monday.