Rupee ends firmer on dollar selling by exporters, banks

Wednesday, 7 September 2016 00:01 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended higher on Tuesday as dollar selling by exporters and banks on behalf of foreign investors to buy government securities helped the currency amid a lack of demand from importers for the greenback, dealers said.

The spot rupee ended at 145.43/48 per dollar, slightly firmer compared with Monday’s close of 145.45/50. One-week rupee forwards ended at 145.60/70, compared with the previous close of 145.60/65.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

“There was some (bank dollar) selling (on behalf of foreign investors) to buy bonds as well as some exporter conversions,” a currency dealer said, asking not to be named.

Dealers said seasonal importer demand would pick up from mid-October.

Central bank Governor Indrajith Coomaraswamy said last week that the currency was not under upward pressure as capital inflows had not been of sufficient magnitude to exert such pressure.

The central bank has largely not intervened to defend the rupee ever since a dual-tenure sovereign bond issue raised $1.5 billion in July.