Rupee ends 5-day winning streak

Saturday, 26 October 2013 07:16 - - {{hitsCtrl.values.hits}}

Reuters: The rupee edged down on Friday from a near four-month closing high, snapping a five-day winning streak, as importer dollar demand offset exporter sales of the greenback, dealers said. The currency appreciated 0.4% this week on foreign buying in John Keells Holdings’ rights issue. The spot rupee closed at 130.55/65 per dollar slightly lower than Thursday’s close of 130.57/60. “Project related dollar demand pulled the rupee back,” a currency dealer said. Dealers also said foreign buying in conglomerate John Keells Holdings has helped boost the currency for much of this week. The company is raising $299 million by selling rights and warrants to fund a $850 million resort project. The deadline to raise the money is Friday. Dealers said with the rights issue coming to an end on Friday the rupee could depreciate slightly from next week onwards. Central Bank Governor Ajith Nivard Cabraal told Reuters on Wednesday the rupee was under appreciation pressure and the Central Bank had been intervening to curb a sharp rise. On Thursday Cabraal again told Reuters that the Central Bank was buying dollars. Dealers later confirmed that two State banks, through which the Central Bank usually directs the market, were seen buying dollars at Rs. 130.60. The rupee hit a record low of 135.20 on 28 August, but has managed to stem further losses and has risen 3.53% since then.

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