Rupee edges down on importer dollar demand

Reuters: The rupee ended a tad weaker on Friday as importer demand for the dollar outpaced greenback sales by exporters and banks, dealers said.

The rupee ended at 141.00/05 per dollar compared to Thursday’s close of 140.95/00.

“Importer demand was there but bank dollar sales prevented the fall,” a currency dealer said on condition of anonymity. “The rupee will continue to be under pressure but it won’t be out of control.”

The local currency eased on Wednesday due to panic selling by exporters on fears of a rise in the currency after a sovereign bond sale.

Sri Lanka borrowed $1.5 billion via a 10-year sovereign bond sale on Tuesday at a 6.85% yield, down from an initial guidance of about 7%. 

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