|Â Rupee forwards weaker on importer dollar demand
Reuters: Rupee forwards ended weaker on Tuesday on importer dollar demand, though moral suasion from the Central Bank prevented a steep decline in the local currency, dealers said.
Dealers said the rupee was under pressure as imports continue to rise in a stable exchange rate regime and a low interest rate environment.
The rupee will likely remain weak due to rising seasonal imports, at least through November and then start to inch up in December on remittances, they added.
The spot currency ended steady at 131.00/10 per dollar compared with Mondayâ€™s close.
Dealers said the Central Bank defended the local currency at 131.00. Central Bank officials were not immediately available for comments.
Three-day forwards, or spot-next, which was actively traded, ended weaker at 131.12/15 per dollar compared with Mondayâ€™s close of 131.10/15. Dealers said the Central Bank lowered the three-day forward moral suasion level by two cents to 131.12.
Overseas investors sold a net Rs. 39.54 billion ($ 302 million) worth of Government securities in the eight weeks through 12 November, data from the Central Bank showed.