Rupee ends firmer as bank dollar sales offset demand

Reuters: The rupee ended firmer on Thursday as exporter and bank dollar sales outpaced importer demand for the US currency, dealers said.

The spot rupee ended at 152.70/75 per dollar, compared with Wednesday’s close of 152.80/90.

“State banks were on the offer today and they sold some dollars. There was some demand from small local banks to cover import bills,” said a currency dealer, requesting anonymity.

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.

The island nation has seen Rs. 27.5 billion ($ 180.09 million) of net inflow into equities up to Thursday’s close, and Rs. 5.7 billion worth inflows into government securities as of 23 August, official data showed.