Rupee ends tad weaker on importer dollar demand

Tuesday, 31 July 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended slightly weaker yesterday as dollar demand from importers surpassed greenback sales by banks, traders said.

The rupee, which traded at 159.90 rupees per dollar during the day, ended at 159.65/75 per dollar, compared with last Thursday’s close of 159.50/60. It has declined 4.01% so far this year and had hit a record low of 160.17 on 20 June.

“Today, there was importer demand. Large importer demand was present, especially construction-related. No big exporter flows, but there was some remittance (inflow),” said a currency dealer, asking not to be named.

The stocks, bond and foreign exchange markets were closed on Friday for a public holiday.

Central Bank Governor Indrajit Coomaraswamy had said earlier that the rupee’s decline was driven mainly by factors outside of Sri Lanka, and that emerging-market currencies were under pressure.

Foreign investors sold government securities worth a net Rs. 1.98 billion ($ 12.4 million) in the week ended 18 July, bringing the outflows so far this year to Rs. 31.6 billion, Central Bank data showed.