Rupee firmer on dollar inflows from gold sales

Wednesday, 2 October 2013 00:58 - - {{hitsCtrl.values.hits}}

Reuters: The rupee rose on Tuesday due to dollar inflows from gold exports, offsetting early importer demand for the greenback. Dealers said the rupee may be steady in the near future on expected dollar weakening due to a shutdown in the US Government as last-minute maneuvers failed to resolve deep differences between Democrats and Republicans.

The rupee spot ended at 131.50/60, compared with Monday’s close of 132.00/132.05. Dealers said dollar inflows into a private bank through gold exports helped the currency strengthen in the absence of demand from State banks. “State banks were keeping the bid, but we did not see them on Tuesday and there were some inflows from gold exports,” said a currency dealer. The rupee hit a record low of 135.20 on 28 August, but has managed to stem further losses since then. It has fallen 3.3% this year, after depreciating about 10% in 2012.