Rupee edges down for third straight session

Reuters: The rupee ended slightly weaker for a third straight session on Wednesday on importer dollar buying, with the market expecting further depreciation in the currency on anticipated higher imports this month, dealers said.

The spot rupee, which was traded at 153.70 per dollar, closed at 153.65/72, slightly weaker from Tuesday’s close of 153.62/68.

“Importer season has started and this month is crucial,” a currency dealer said asking not to be named.

“We expect higher depreciation pressure on the rupee in the first two weeks. The currency could fall to 154.50 per dollar this month due to importer demand.”

The rupee has slipped 2.7% so far this year.

The currency is expected to weaken on generally higher importer demand ahead of the national budget this month, dealers said.

The island nation has seen Rs. 20.25 billion ($ 131.8 million) of net inflows into equities this year as of Monday’s close, and Rs. 41.1 billion into government securities as of 25 October, official data showed.