Rupee hovers near 3-month high after CB comments

Tuesday, 8 October 2013 00:52 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee hovered near its three-month high on Monday as dollar sales by banks and exporters offset importer demand for the greenback after the Central Bank said it expected the currency to behave in “a stable manner” in the next few months. Spot rupee closed steady at 131.15/20, its highest close since 15 July. Central Bank Governor Ajith Nivard Cabraal told Reuters in an interview on Friday that the rupee would “behave in a stable manner” in the next few months as the monetary authority has taken steps needed to deal with a volatile environment. The dollar came under pressure globally as a US budget standoff looked set to drag into a second week. Against a basket of major currencies, the dollar eased 0.1% to be within striking distance of an eight-month trough hit last week. The rupee hit a record low of 135.20 on 28 August, but has managed to stem further losses since then. It has risen 3.2% since hitting its all-time low. The currency is down 2.8% this year, after depreciating about 10% in 2012.