Rupee ends weaker on importer dollar demand

Reuters: The rupee closed weaker on Wednesday on importer dollar demand, after recent gains due to year-end remittances and selling of the US currency by exporters, dealers said.

The spot rupee ended at 153.25/35 per dollar, weaker than Tuesday’s close of 153.00/10.

“Today, the rupee weakened due to some importer (dollar) demand... State banks were also seen buying,” said a currency dealer, adding that demand for the local currency came after it stayed around 153.00 levels for the last couple of days.

The rupee has lost 2.3% so far this year, but currency dealers say dollar demand has slightly waned, lending support to the rupee.

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. 18.47 billion ($ 120.64 million) this year as of Wednesday’s close. They had bought government securities worth a net Rs. 60.4 billion as of 6 December, official data showed.