Rupee at over five week high on remittances; more gains expected

Wednesday, 4 December 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended at a more than five-week high on Tuesday, helped by high inward remittances from expatriates for their families ahead of Christmas and the New Year and exporter dollar conversions, dealers said. The spot rupee LKR rose 0.1% to close at 131.85/95 per dollar, its highest since 25 October and firmer from Monday’s 131.00/05. “There are a lot of remittances and we see the rupee steady at this level,” Central Bank Governor Ajith Nivard Cabraal told Reuters. Currency dealers said a State bank, through which the Central Bank usually directs the market, bought dollars at Rs. 130.90 each to curb the upward pressure in the rupee. “We expect further appreciation in the currency, and to end the year at 130.60,” a dealer said. Cabraal had told Reuters earlier that the Central Bank would intervene to keep the rupee stable if there was excess volatility after it hit a seven-week low on importer dollar demand despite intervention by State banks. The rupee has gained 3.3% since it hit a record low of 135.20 on 28 August.

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