Rupee forwards rise on strong remittances

Friday, 3 April 2015 00:55 - - {{hitsCtrl.values.hits}}

Reuters: Rupee forwards ended firmer on Thursday as inflows from strong remittances and exporter dollar sales outpaced thin importer demand for the greenback, dealers said. Actively traded one-week forwards ended at 133.40/45 per dollar, compared with Wednesday’s close of 133.60/70. Two-week forwards ended at 133.58/65, compared with their previous close of 133.68/72. “There were remittances and state bank dollar demand was not seen today,” said a currency dealer on condition of anonymity. Dealers said people were converting dollars into rupees ahead of public holidays on 3, 13, and 14 April. They expect the rupee to gain with a pick-up in seasonal inward remittances ahead of the Sinhala-Tamil New Year on 14 April. The Central Bank through moral suasion prevented the spot rupee from dropping below 132.90/133.20, a limit it set in February. Central Bank officials were not available for comment. Dealers said the market may wait for more cues on interest rates after T-bill yields fell for a third straight week. Yields on T-bills fell between 55 basis points and 63 basis points in the last three weekly auctions, though the fall in interest rates is slowing. Both stock and currency markets are closed on Friday for a Buddhist religious holiday. Normal trading will resume on Monday.

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