Rupee falls on importer dollar demand
Reuters: The rupee fell on Wednesday as importer dollar demand outpaced inward remittances and greenback sales by exporters, dealers said.
The rupee ended at 130.25/29 per dollar compared with Tuesday’s close of 130.22/24.
“The rupee was weaker on continued importer dollar demand, possibly for oil bills, and we saw some foreign bond holders exiting too,” said a currency dealer asking not to be named.
Foreign investors sold a net Rs. 3.45 billion ($ 26.50 million) worth of Government securities in the week ended 3 September, official data showed.
“There was mixed interest... While some exited, some were looking into,” said another currency dealer.
Dealers are also waiting to see whether the proceeds from National Savings Bank’s (NSB) $ 250 million bond sale will be taken up by the market or get absorbed by the Central Bank.
A Central Bank official said the bank would absorb the proceeds.
“It is not going to the market, it is likely that CBSL will get the dollars,” the official said on condition of anonymity.