Rupee ends steady on state bank dollar sales

Reuters: The rupee ended steady on Tuesday, a day after it depreciated 0.15%, as a state-owned bank maintained its dollar selling rate at 133.80 amid demand for the greenback from importers, dealers said.

“There was importer demand but the state bank sold at 133.80,” a currency dealer said.

The rupee is under pressure as more than Rs. 80 billion ($ 598 million) worth of government securities would mature this week and some foreign investors may exit from treasury bonds, another dealer said, asking not to be named as he was not authourised to talk to the media.

Two other dealers confirmed the maturity amount.

The rupee fell for the first time in seven sessions on Monday after the state-run bank raised the dollar-selling rate to 133.80 from 133.60.

Dealers and analysts said the central bank may not be able to sustain the rupee’s appreciation trend as import demand could pick up due to lower interest rates, while foreign investors continue to sell government securities.

Pressure on the currency could also build if exporters stop selling dollars until after the 17 August parliamentary elections, dealers said.