Rupee ends steady; importer demand offsets exporter dollar sales

Reuters: The rupee ended steady for a fifth straight session on Friday as dollar sales by exporters and banks were offset by demand for the U.S. currency from importers, dealers said.

The spot rupee ended at 145.50/55 per dollar, unchanged from Thursday’s close.

“The demand was offset by (dollar) sales by foreign banks to buy bonds and some stock-related inflow,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

Since a $1.5 billion inflow from a dual-tenure sovereign bond issue, the central bank has largely not intervened in the currency market to defend the rupee. Central Bank officials were not available for comment.

One-week rupee forwards ended at 145.74/77 per dollar, compared with Thursday’s close of 145.75/78.

Foreign investors bought a net Rs. 66.9 billion ($460.11 million) worth of government securities between 29 April and 10 August, Central Bank data showed