Rupee slips from near three-month high; likely to be steady

Wednesday, 9 October 2013 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: The rupee ended slightly weaker on Tuesday as mild importer demand for the greenback outpaced the dollar sales by exporters and banks, while the Central Bank’s comments on the local currency limited the slide. The rupee spot ended down at Rs. 131.20/25 per dollar, compared with Monday’s close of Rs. 131.15/20. It hit a near three-month high on Monday. Currency dealers said the rupee was likely to trade steady in the near future in line with the Central Bank’s expectation. Central Bank Governor Ajith Nivard Cabraal told Reuters in an interview on Friday that the rupee would “behave in a stable manner” in the next few months as the monetary authority has taken steps needed to deal with a volatile environment. The dollar index, which measures the US currency’s value against a basket of currencies, was still within striking distance of last week’s eight-month low of 79.627 and traders said it remained vulnerable to further selling as the US Government shutdown entered a second week. The rupee hit a record low of Rs. 135.20 on 28 August, but has managed to stem further losses since then. It has risen 3.2% since hitting its all-time low. The currency is down 2.8% this year, after depreciating about 10% in 2012.

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