Rupee ends lower on importer dollar demand

Reuters: The rupee ended slightly weaker on Monday as dollar demand from importers outpaced selling of the US currency by exporters, dealers said.

The spot rupee ended at 152.95/153.05 per dollar, compared with Friday’s close of 152.70/80.

“The month-end importer demand was there and it was throughout the day. It was the supply constraints which weakened the rupee,” said a currency dealer requesting anonymity.

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.

The island nation has seen Rs. 17.7 billion ($ 115.84 million) of net inflows into equities this year as of Monday’s close, and Rs. 17.3 billion worth inflows this year into government securities as of 20 September, official data showed.