Saturday, 15 March 2014 00:00
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REUTERS: The rupee edged up on Friday from a near two-week low hit in the previous session as dollar sales by banks outpaced late dollar demand from importers, dealers said.
The spot rupee strengthened to Rs. 130.52/57 per dollar during the session before closing at Rs. 130.62/65, firmer from Thursday’s close of Rs. 130.68/75, which was its weakest close since 28 February.
“There was erratic volatility. There was bank selling in the morning and then we saw importer (dollar) demand coming in later part of the day,” a currency dealer said on condition of anonymity.
Dealers said the rupee was expected to trade in a range of Rs. 130.50 to Rs. 130.75 in the near future.
The currency has gained 0.32% in the last 12 sessions through Friday, Thomson Reuters data showed. It has been on a rising trend since 27 February amid weak demand for dollars from importers, dealers said.
The market, however, expects downward pressure due to high imports for the traditional New Year in mid-April and outflows from equities, though the depreciation is expected to be mild as the central bank has strong reserves to defend the rupee.
Foreign investors sold a net Rs. 5.2 billion worth of stocks in 25 straight sessions through Friday, and sold a net Rs. 4.57 billion worth of government securities for the week ended 5 March.
The rupee has gained about 3.5% since it hit a record low of Rs. 135.20 on 28 August last year. It lost 2.5% in 2013.
