Rupee falls on importer dollar demand

Tuesday, 21 January 2014 00:01 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended a tad weaker on Monday due to importer dollar demand, while dealers said a Government decision to keep a $1 billion inflow from a recent sovereign bond sale with the Central Bank’s reserves could hurt the currency. The spot rupee closed at 130.75/77 per dollar, tad weaker from Friday’s close of 130.73/75. Swarna Gunaratne, the Head of the Central Bank’s Economic Research Department, said the Government has kept the inflows in the Central Bank’s reserves after they came into the country last week. “It will be added into the foreign reserves and used later,” she told Reuters after market-hours on Monday. The Central Bank said on 2 January it expected the rupee to strengthen in the medium term and any direct intervention in the foreign exchange market would be minimal. The rupee has gained about 3.4% since it hit a record low of 135.20 on 28 August. It lost 2.5% in 2013.

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