Rupee inches higher

Friday, 29 August 2014 00:50 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee ended slightly firmer on Thursday as exporter dollar sales outpaced demand for the greenback from importers and foreign bond holders, dealers said. Dealers expect the local currency to remain steady for the rest of the year after positive comments by the Central Bank Chief last week. Central Bank Governor Ajith Nivard Cabraal said the banking regulator would intervene in the thinly-traded market whenever needed to keep the rupee stable. The rupee ended at 130.18/24 per dollar, from Wednesday’s close of 130.20/22. “Some foreigners exited from bonds, but local demand was there,” a currency dealer said. Dealers said the bond market was active, with the five-year bond trading five to 10 basis points stronger at 7.70/80 on Thursday compared with Wednesday’s close of 7.75/95. Foreign investors bought a net Rs. 1.81 billion ($ 13.9 million) worth of Government securities in the week ended 20 August, official data showed. The Central Bank rejected all bids for the 91-day Treasury bill at an auction for the second straight week, while the yields on the 182-day and 364-day Treasury bills held steady at the weekly auction on Wednesday.