Rupee ends lower on importer dollar demand

Reuters - The rupee closed slightly weaker on Friday as importer demand for the U.S. currency surpassed exporter dollar sales, dealers said.

The spot rupee ended at 152.95/153.00 per dollar, compared with Thursday’s close of 152.90/95.

“There was bit of a dollar demand today. We have seen some demand from state banks too. I don’t think its intervention from the Central Bank and it may be oil demand,” said a currency dealer, requesting anonymity.

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

The island nation has seen Rs. 28 billion ($183.13 million) of net inflow into equities up to Friday’s close and Rs. 5.7 billion worth inflows into government securities up to 23 August, official data showed.