Tuesday, 6 August 2013 00:22
Reuters: The rupee ended firmer on Monday as exporter dollar sales offset early importer demand and a vigilant Central Bank eager to hold the greenback below Rs. 131.60 also forced dealers to shift to forward trades.
Dealers said they moved to one-day forwards instead of spot trade after the Central Bank’s earlier direction to banks not to accept bids above Rs. 131.60 per dollar.
The one-day forward, which was weaker in early trade, ended firmer at 131.62/65 per dollar from Friday’s close of 131.65/70.
“There was some exporter conversion in the latter part of the day,” said a currency dealer on condition of anonymity.
Central Bank officials were not available for comment.
Dealers said the pressure on the currency remained as exporters adopted a wait-and-see approach, while remittances had also dried up. The downward pressure on the rupee could intensify if there were no dollar inflows in the short term, they added.