Rupee ends firmer on exporters’ dollar conversions

Saturday, 5 November 2016 00:21 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended firmer on Friday as dollar selling by exporters surpassed demand for the greenback from importers, dealers said.

Rupee forwards were active, with one-week forwards ending higher at 148.35/45 per dollar, compared with Thursday’s close of 148.80/90.

“Exporter conversions exceeded the mild importer demand,” a currency dealer said, asking not to be named.

“Importers were staying away thinking the rupee will strengthen further.”

Dealers said the rupee has also been hit due to selling of Government securities by foreign investors.

Foreign investors have net sold Rs. 24.5 billion ($165.60 million) worth of Government securities in the three weeks to 2 November, data from the Central Bank showed.

The Central Bank Governor said on Tuesday that he expected the rupee to stabilise when a stake sale worth $1 billion in the southern port of Hambantota to a Chinese investor is completed in four to five months.

Governor Indrajit Coomaraswamy said that proceeds of the stake sale would be converted into rupees, easing the strain on the currency that has been under pressure since mid-September due to seasonal demand for the US dollar from importers.