Rupee ends marginally weaker in dull trade

Friday, 23 February 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended slightly weaker on Thursday in dull trade as importer dollar demand outweighed selling of the greenback by exporters

The rupee ended at 155.25/30 per dollar, compared with Wednesday’s close of 155.10/25. The rupee hit a record low of 155.90 last week.

“There was some importer dollar demand, but the market was dull with trading volume also was low,” a dealer said.

The local currency has weakened 1.3% so far this year. The domestic currency lost 2.5% last year and 3.9% in 2016. The currency is expected to be pressured by continued importer demand for dollars, dealers said. Dealers added they expect a gradual depreciation in the rupee and higher volatility this year on account of debt repayments by the government. The Government must repay an estimated Rs. 1.97 trillion ($ 12.68 billion) in 2018 - a record high - including $ 2.9 billion of foreign loans and a total of $ 5.36 billion in interest.

Foreign investors sold government securities net worth Rs. 2.1 billion in the week ended 14 February, Central Bank data showed.