Rupee ends weaker on importer dlr demand

Reuters: The rupee closed weaker on Tuesday as dollar demand from importers surpassed the sales of the US currency by exporters and by banks due to inward remittances, dealers said.

The spot rupee ended at 153.23/30 per dollar, compared with Monday’s closing level of 153.05/20.

“There was pressure from some petroleum bills and other importer demand (for the dollar),” said a currency dealer who did not wish to be named.

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying the dollar to build up the country’s depleted foreign currency reserves.

The island nation had seen Rs. 18 billion ($117.49 million) of net inflows into equities this year as of Tuesday’s close, and Rs. 29.1 billion worth inflows into Government securities as of 27 September this year, official data showed.