Rupee edges down on importer dollar demand

Reuters: The rupee ended slightly weaker in dull trade on Monday due to importer dollar demand, while selling of the greenback by banks helped prevent the local currency from falling further, dealers said.

The rupee ended at 141.00/141.05 per dollar, compared with Friday’s close of 140.92/97.

“The rupee is under pressure amid heavy Government spending and on top of that the export sector is not growing,” said a currency dealer who asked not to be named.

The country’s exports in the first seven months fell 0.9% on year, Central Bank data showed.

The rupee hit a record low of 141.40 per dollar on 28 September, but recovered slightly after a State-run bank sold dollars.

Dealers said importer dollar demand has fallen following Government measures to discourage vehicle imports but the seasonal imports are expected to pick up.