Rupee forwards end weaker on importer dollar demand

Thursday, 1 January 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Rupee forwards ended slightly weaker on Wednesday due to mild importer dollar demand. The spot currency was maintained between Rs. 130 and 131.75 throughout the year, with the Central Bank defending the currency at both ends to ensure a stable exchange rate. It fell 0.3% for the year, Thomson Reuters data showed. Four-day forwards, which were actively traded on Wednesday, closed at 132.10/20 per dollar, a tad weaker from Tuesday’s 132.05/15. “There is importer demand and the one-week forward was traded at 132.35/50 after banks did not trade four-day forwards below 132.10 due to moral suasion (by the Central Bank),” a currency dealer said. Rupee forwards have been maintained around 132 throughout December as the Central Bank used moral suasion to defend the currency. The spot currency was not traded on Wednesday. Dealers said unusually high imports towards the end of 2014, amid lower interest rates and a stable exchange rate, had pressured the rupee.

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