Rupee edges down on importer dollar demand

Reuters: The rupee ended slightly weaker on Tuesday in dull trade as importer dollar buying outpaced mild exporter greenback conversions, dealers said.

The spot rupee closed at 153.62/68, compared with Monday’s close of 153.55/60.

“The year-end import season has started. So we see the rupee further depreciating,” a currency dealer said, asking not to be named.

The rupee has slipped 2.6% so far this year.

The currency came under pressure early this month due to dollar demand from state-run Ceylon Petroleum Corp (CPC), which stocked up crude oil ahead of an expected fuel price hike, dealers said.

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

The island nation has seen Rs. 20 billion ($130.25 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.