Rupee ends weaker on importer dollar demand

Reuters: The rupee closed slightly weaker on Tuesday, as dollar demand from importers outpaced inflows of the US currency from inward remittances, dealers said.

The spot rupee closed at 153.73/80 per dollar, compared with Monday’s close of 153.63/70.

“Today, there were demand (for dollars) from a foreign bank for a construction-related demand and also we saw some demand for oil bills,” said a currency dealer who declined to be named.

The rupee has lost 2.8% 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 ($119.67 million) this year as of Tuesday’s close. They net bought Government securities worth Rs. 46.7 billion as of 22 November, official data showed.