Rupee ends firmer on inward remittances, exporter dollar sales

Reuters: The rupee closed firmer on Wednesday, as exporter dollar sales and inward remittances exceeded demand for the US currency by importers, dealers said.

The spot rupee ended at 152.90/153.00 per dollar, compared with Tuesday’s close of 153.05/15.

“There were some exporter (dollar) conversions and inward remittances,” said a currency dealer. “The import demand is very low.” The rupee has lost 2.3% so far this year, but currency dealers say dollar demand has slightly waned, lending support to the domestic currency.

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. 18.34 billion ($ 119.87 million) this year as of Wednesday’s close. They had bought government securities worth a net Rs. 62.4 billion as of 13 December, official data showed.