Rupee ends firmer on inward remittances

Reuters: The rupee closed marginally higher on Monday, as dollar inflows from inward remittances outpaced demand from importers for the US currency, dealers said.

The spot rupee closed at 153.63/70 per dollar, compared with Friday’s close of 153.75/80.

“The demand for dollars was there today, but rupee ended firmer due to the inward remittance for salaries,” said a currency dealer who declined to be named. The rupee has lost 2.7% so far this year, and dealers say it is expected to face pressure with imports of more low-end vehicles, on which the government has already reduced taxes.

The government imposed new taxes on high-end vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 Budget presented earlier this month.

Foreign investors net bought equities worth Rs. 18.4 billion ($ 119.83 million) this year as of Monday’s close. They net bought government securities worth Rs. 46.7 billion as of 22 November, official data showed.