Rupee ends tad firmer on remittance, exporter dollar sales
Saturday, 20 September 2014 00:00
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Reuters: The rupee edged up on Friday as continued inward remittances and exporter dollar conversions outpaced demand for the greenback from importers, dealers said.
The spot currency ended little changed at 130.28/30 per dollar compared to Thursday’s close of 130.28/32.
The three-day forwards, or spot next, which was active in the three straight sessions through Friday, ended a tad firmer at 130.20/34 per dollar compared to Thursday’s close of 130.34/36.
Dealers said the pressure from importers in early trade forced the Central Bank to intervene for the third straight day to prevent a fall in the local currency.
The Central Bank forced banks to trade in the three-day forward rupee contract by restricting spot rupee trades above 130.28, dealers said.
“Being a Friday, the import demand dried out in the latter part, easing the early pressure on the rupee. There were normal inflows,” said a currency dealer asking not to be named.
Central Bank officials were not immediately available for comment.
Dealers said imports have picked up and one of the two state banks through which the Central Bank usually intervenes in the foreign exchange market also bought dollars at 130.28.
Dealers said the rupee would trade at the same level due to the Central Bank’s intervention despite the pick-up in imports.
Foreign investors sold a net Rs. 2.7 billion ($ 20.73 million) worth of government securities in the week ended 17 September, official data showed.
