Rupee recovers on exporter dollar sales

Friday, 24 January 2014 00:57 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee ended a tad firmer on Thursday, edging up from the previous session’s five-week low, as late exporter dollar conversions helped offset the early importer demand for the greenback, dealers said. The spot rupee ended at 130.73/76 per dollar, firmer from Wednesday’s close of 130.84/88, its lowest level since 13 December. However, dealers said the rupee is expected to fall in the absence of any intervention by the Central Bank after it said on Monday that inflows of $1 billion from a recent sovereign bond sale would be kept in reserves, contrary to market expectations. The Central Bank had said on 2 January it expected the rupee to strengthen in the medium term and any direct intervention in the foreign exchange market would be minimum. The rupee has gained about 3.4% since it hit a record low of 135.20 on 28 August. It lost 2.5% in 2013.