Rupee edges up on remittances ahead of long weekend

Reuters: The rupee ended slightly firmer on Thursday, snapping a three-session losing streak, as inflows from remittances ahead of a long weekend outpaced importer dollar demand, dealers said.

Trading was, however, dull and the currency still faced depreciation pressure on expected demand for the US currency from importers, they said.

The spot rupee, which was traded at 153.69 per dollar, closed at 153.60/70, slightly higher from Wednesday’s close of 153.65/72.

“The remittances helped the currency to end a bit firmer. But the downward pressure is still there as the imports are very high in November,” a currency dealer said, asking not to be named.

He said the market is also waiting for direction from the national budget, which will be presented next week.

“All depend on what the government is trying to do with relaxing taxes on vehicles. If they relax, there could be more imports of vehicles and dollar outflows,” the currency dealer said.

The rupee has slipped 2.64% so far this year.

The island nation has seen Rs. 20.4 billion ($ 131.8 million) worth net inflows into equities this year as of Thursday’s close, and Rs. 41.1 billion into government securities as of 25 October, official data showed.

Sri Lanka’s currency and stock markets are closed for a Buddhist holiday on Friday.