Rupee up on dollar sales by banks, exporters

Friday, 13 September 2013 03:27 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee ended a tad firmer on Thursday as dollar sales by banks and exporters offset early importer dollar demand, with the recent strong selling pressure on the local currency continuing to ease, dealers said. The rupee spot, which had been inactive for several weeks, was actively traded on Thursday for the second straight session and closed at 132.20/30 per dollar, firmer from Wednesday’s close of 132.25/35. Earlier in the session, the rupee edged down slightly on importer dollar demand, dealers said. Dealers expected the rupee to appreciate once inflows from a five-year bond by State-owned National Savings Bank (NSB) come in. The bond was launched for pricing early on Thursday with a price guidance of 9.25%, which dealers said was “very expensive”. Dealers were awaiting clues from the Federal Open Market Committee meeting next week as markets wait to see if the US Central Bank will trim its bond-purchase program. The rupee hit a record low of 135.20 to the dollar on 28 August before recovering. The rupee has been falling since early July, with foreign investors pulling out of local bonds as US Treasury yields rose on expectations the Federal Reserve would soon begin to taper its big bond buying program. The rupee has fallen nearly 3.6% this year, after depreciating around 10% in 2012.