Rupee ends firmer on exporter dollar sales

Reuters: The rupee closed firmer on Thursday as late exporter dollar sales outpaced importer demand for the US currency, dealers said.

The spot rupee which traded at 153.50 per dollar during the day ended at 153.10/20 per dollar, against Wednesday’s close of 153.25/35.

“There was importer demand in the morning, but when the rupee hit 153.50 exporters came in and sold the dollars,” said a currency dealer.

The rupee has lost 2.3% so far this year, but currency dealers say dollar demand has slightly waned, lending support to the rupee.

The market has been waiting for more clarity over a foreign exchange management act introduced by the government last month. Foreign investors have net bought equities worth Rs. 18.14 billion ($ 118.45 million) this year as of Thursday’s close. They had bought government securities worth a net Rs. 60.4 billion as of 6 December, official data showed.