Rupee ends slightly weaker on importer dollar demand

Reuters: The rupee closed marginally weaker on Monday as importer dollar demand surpassed inward remittances and selling of the US currency by exporters and a bank, dealers said.

The spot rupee, which was traded at 153.20/30 per dollar during the day, ended at 153.30/35 per dollar, compared with Friday’s close of 153.22/28.

“There was importer demand today, we have seen some (dollar) selling by a foreign bank,” said a currency dealer who did not wish to be named.

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying the dollar to build up the country’s depleted foreign currency reserves.The island nation saw Rs. 20.1 billion ($ 131.12 million) of net inflows into equities this year as of Monday’s close, and Rs. 31.1 billion worth inflows into government securities as of 4 October, official data showed.