Rupee ends firmer on exporter dollar sales

Reuters: The rupee closed firmer on Tuesday, as exporter dollar sales offset demand for the US currency by importers, dealers said.

The spot rupee ended at 153.05/15 per dollar, compared with Monday’s close of 153.10/15.

“It was very thin trade. Rupee ended firmer, it’s mainly because import demand is getting thinner day by day. 

Today, there were some exporter conversions too,” said a currency dealer.

The rupee has lost 2.3% so far this year, but currency dealers say dollar demand has slightly waned, lending support to the rupee.

The market has been waiting for more clarity over a foreign exchange management act introduced by the Government last month.

Foreign investors have net bought equities worth Rs. 18.42 billion ($ 120.35 million) this year as of Tuesday’s close. They bought government securities worth a net Rs. 62.4 billion as of 13 December, official data showed.