Rupee ends weaker on importer dollar demand

Reuters:  The rupee ended slightly weaker in one-week forwards on Monday as importer dollar demand surpassed late exporter greenback sales while nervous investors awaited a policy statement from the new central bank governor, dealers said. 

Sri Lanka’s new central bank chief pledged on Monday to maintain the monetary authority’s independence in decision making and to avoid policies that lead to boom and bust cycles. 

The rupee in one-week forwards, which have been acting as a proxy for the spot rupee, ended at 147.10/20 per dollar from Friday’s close of 146.40/60. It hit 147.70 in intraday trade on importer dollar demand. 

“There was no intervention today, importer demand was there and when the rupee hit 147.70, we saw exporter conversions,” a dealer said. 

Dealers said the spot-next dollar/rupee forwards, which have acted as a proxy for the spot currency since January and indicate the exchange rate for the day following conventional spot settlement, was not quoted on Monday. 

For Monday’s trade, the spot next settlement takes place four days ahead due to the intervening holiday.