Rupee forwards end steady; seen holding at current levels

Thursday, 18 December 2014 00:36 -     - {{hitsCtrl.values.hits}}

Reuters: Rupee forwards closed steady for a third straight day on Wednesday as banks capped the trading at 132.00-per-dollar due to moral suasion by the central bank, despite importer dollar demand, dealers said. The four-day forwards or spot-next-next, which were actively traded, closed at 131.99/132.02 per dollar, little changed from Tuesday’s close of 131.99/132.05. Currency dealers expect the rupee to be at the current level due to the Central Bank’s moral suasion despite mild downward pressure as credit growth and imports are picking up in a lower interest rate and steady exchange rate regime. “We expect the rupee to remain at these levels until the end of this year,” a currency dealer said on condition of anonymity. The spot currency and three-day forwards, or spot-next, were not traded after the Central Bank capped the currency at predetermined levels to prevent volatility, traders said. Central Bank officials were not available for comment. Overseas investors sold a net Rs. 3.75 billion worth of government securities during the week ended 10 December. They sold a net Rs. 43.9 billion ($ 334.86 million) worth in the 11 weeks through 10 December, data from the Central Bank showed.