Rupee ends firmer on exporter dollar sales, inward remittances

Reuters: The rupee closed higher on Wednesday for a third straight session as exporter dollar sales and inward remittances surpassed mild importer demand for the US currency in the absence of dollar buying by state-run banks, dealers said.

The spot rupee ended at 152.90/95 per dollar, up from Tuesday’s close of 153.00/05.

“There was some dollar selling by exporters and we can see some inward remittances also,” said a currency dealer, requesting anonymity.

“There is not much of demand. We expect this trend to continue with the continuous inflows.”

The island nation has seen Rs. 27.9 billion ($ 182.47 million) of net inflow into equities up to Wednesday’s close and Rs. 2.56 billion worth inflows into government securities up to 16 August, official data showed.

The rupee has however 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.