Rupee ends lower on importer dollar demand

Reuters: The rupee ended marginally weaker on Wednesday as importer dollar demand outpaced selling of the US currency by exporters and banks, dealers said.

The spot rupee ended at 152.55/65 per dollar, compared with Monday’s close of 152.45/55.

“Today the demand (for dollar) was there and it was importer 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 had seen Rs. 27.4 billion ($ 179.55 million) of net inflows into equities up to Wednesday’s close, and Rs. 5.7 billion worth inflows into government securities as of 23 August, official data showed.