Rupee forwards end slightly weaker on importer dollar demand

Tuesday, 24 March 2015 00:11 - - {{hitsCtrl.values.hits}}

Reuters: Rupee forwards ended slightly weaker on Monday due to mild importer dollar demand in thin trade, with the market awaiting cues on the direction of interest rates, dealers said. Actively traded two-week rupee forwards ended at 133.87/95 per dollar, compared with Friday’s close of 133.80/90. “It’s a dull day. There was mild importer (dollar) demand,” said a currency dealer on condition of anonymity. The Central Bank, however, prevented a fall in the spot rupee and one-week forwards at 132.90/133.20 and 133.60/75, respectively, within the limits set by it. Central Bank officials were not available for comment. Dealers said the market was awaiting cues on the direction on interest rates after yields on t-bills fell between 31 and 44 basis points at a weekly auction on Wednesday, after having spiked by 112-124 basis points the two previous weekly auctions. They said a probe into all bond auctions since 2012 is also hurting sentiment. Sri Lanka has launched a probe into allegations of corruption in Government bond sales held by the central bank since 2012, the prime minister said on Tuesday, after opposition parties called for an independent investigation into a February bond auction.

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