Rupee ends steady; bank demand offsets exporter dollar sales

Friday, 19 August 2016 00:01 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended steady for a fourth straight session on Thursday as dollar sales by exporters were offset by demand for the US currency from banks, dealers said.

Importer demand for dollars however weighed on the currency, they said.

The spot rupee ended at 145.50/55 per dollar, unchanged from Tuesday’s close.

The markets were closed for a holiday on Wednesday.

“There was (dollar) selling in the market but the rupee is steady as banks buy dollars for swaps,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the Central Bank, and market participants use the forward market levels for guidance on the currency.

Since a $1.5 billion inflow from a dual-tenure sovereign bond issue, the Central Bank has largely not intervened in the currency market to defend the rupee. Central Bank officials were not available for comment.

One-week rupee forwards ended at 145.75/78 per dollar, compared with Tuesday’s close of 145.72/77.

Dealers said importer dollar demand late in the day weighed on the one-week rupee forwards.

Foreign investors bought a net Rs. 66.9 billion ($ 460.11 million) worth of Government securities between 29 April and 10 August, Central Bank data showed.

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