Rupee firmer on exporter dollar sales

Tuesday, 13 August 2013 00:05 -     - {{hitsCtrl.values.hits}}

REUTERS: The rupee ended firmer on Monday as banks and exporters sold dollars, but depreciation pressure on the currency remained in the absence of firm dollar inflows, dealers said. 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 firmer at Rs. 131.64/66 per dollar from Thursday’s close of Rs. 131.73/75. The market was closed on Friday for Eid al-Fitr. The rupee has fallen around 4% between 7 June and 18 July after foreign investors started pulling out of Sri Lanka’s treasury bonds due to a rise in US treasury yields. The currency has been steady around Rs. 131.60 since 18 July as the Central Bank has not been allowing the spot dollar to be traded beyond Rs. 131.60 amid a rise in foreign holding in Government securities, dealers said. Dealers expect the rupee to move in a Rs. 131.50 to Rs. 132.00 range in the short term and continue to depreciate unless the Central Bank steps in or dollar inflows increase significantly.