Rupee rises on inward remittances

Reuters: The rupee closed firmer on Friday due to heavy inward remittances and as a bank sold dollars for a stock-related transaction, dealers said.

The spot rupee, which was traded at 153.34 per dollar during the day, ended at 153.22/28 per dollar, compared with Wednesday’s close of 153.30/38. Sri Lanka’s markets were closed on Thursday for a Buddhist holiday.

“Today there was heavy remittance flow as well as a foreign bank sold dollars for stock-related transaction,” said a currency dealer who did not wish to be named.

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

The island nation had seen Rs. 19.9 billion ($129.90 million) of net inflows into equities this year as of Friday’s close, and Rs. 29.1 billion worth inflows into government securities as of 27 September, official data showed.