Rupee forwards firmer on strong remittances

Wednesday, 8 April 2015 00:26 -     - {{hitsCtrl.values.hits}}

Reuters: Rupee forwards ended firmer on Tuesday as inflows from strong remittances and exporter dollar sales outpaced thin importer demand for the greenback, dealers said. Actively traded one-week forwards ended firmer at 133.20/25 per dollar, compared with Monday’s close of 133.33/38. One-month forwards ended at 133.63/68 per dollar, compared with their previous close of 133.71/74. Two-week forwards ended at 133.30/40 per dollar, compared with their previous close of 133.43/50. “Rupee is stronger on continued inflows to rupee Bonds as well as seasonal inflows,” said a currency dealer on condition of anonymity. People are converting dollars into rupees ahead of public holidays on 13 and 14 April, dealers said, adding the local currency was expected to gain on higher seasonal inward remittances ahead of the Sinhala-Tamil New Year on 14 April. The Central Bank through moral suasion prevented the spot rupee from dropping below 132.90/133.20, a limit it set in February. Central Bank officials were not available for comment. Dealers said the market may wait for more cues on interest rates after T-Bill yields fell for a third straight week, though the government’s borrowing has shot up sharply due to its populist policies ahead of a Parliamentary poll. Yields on T-Bills have fallen between 55 basis points and 63 basis points in the last three weekly auctions, though the fall in interest rates is slowing.