Rupee hits over 1-year high on dollar inflows; gains curbed

Thursday, 10 July 2014 00:31 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended at a more-than-one-year high on Wednesday on inflows from remittances and exporter dollar sales while dollar buying by State banks curbed gains in the local unit. The rupee ended at 130.23/24 per dollar, its highest close since 26 June 2013, Thomson Reuters data showed. On Tuesday, it had closed at 130.25/26. “There are inflows and not much of demand for dollars, the State banks lowered the buy rate by two cents to 130.23,” said a currency dealer, asking not to be named. Dollar purchases by two State banks helped curb volatility by mopping up liquidity and smoothening transactions, dealers said. The Central Bank usually directs the market through the two state banks. Dealers said the fuel import bill, which accounts for around 20% of monthly imports, is also on the decline because the country has been shifting to alternative power sources such as coal and hydro.

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