Rupee drops to 10-month low on importer dollar demand

Friday, 26 July 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended 0.11% weaker on Thursday, touching a 10-month low, due to importer dollar demand though banks sold dollar to cover rupee liquidity shortage, currency dealers said. The rupee closed at 131.65/75, its lowest close since 19 September, slipping from Wednesday’s 131.50/60. “The rupee is weaker on importer dollar demand though banks sold dollars to cover (rupee) short positions,” said a currency dealer. Dealers said they expected the rupee to move in a range of 131.50 to 132 in the short term, adding that the currency would continue to depreciate unless the Central Bank took some monetary tightening measures. The rupee has fallen 4.1% since 7 June as foreign investors pulled out of Sri Lanka’s Treasury bonds due to a rise in US treasury yields.

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