Rupee edges down on importer dollar demand

Thursday, 13 March 2014 00:30 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended a tad weaker on Wednesday on importer dollar demand from the two State banks in the absence of any Central Bank intervention, dealers said. The spot rupee ended at 130.60/65 per dollar, weaker from Tuesday’s close of 130.55/57. “Two State banks bought dollars, I don’t think it’s an intervention from the Central Bank,” a currency dealer said on condition of anonymity. The currency has gained 0.33% in the last 10 sessions through Wednesday, Thomson Reuters data showed. The rupee has been on a rising trend since 27 February amid weak demand for dollars from importers, dealers said. The market, however, expects downward pressure due to high imports for the traditional new year in mid-April and outflows from equities, though the depreciation is expected to be mild as the Central Bank has strong reserves to defend the rupee. Foreign investors sold a net Rs. 5.2 billion worth of stocks in 23 straight sessions through Wednesday, and sold a net Rs. 4.57 billion worth of Government securities for the week ended 5 March. The rupee has gained about 3.5% since it hit a record low of 135.20 on 28 August last year. It lost 2.5% in 2013.

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