Rupee slips on importer dollar demand

Reuters: The rupee closed slightly weaker on Thursday as importer dollar demand in late trade outpaced year-end remittances and selling of the US currency by exporters, dealers said.

The spot rupee ended at 153.30/35 per dollar, compared with Wednesday’s close of 153.25/35.

“There was dollar demand from state banks, mainly for imports, in late hours. Usually the currency appreciates in December due to higher inflows from remittances,” a currency dealer said asking not to be named.

The rupee has lost 2.5% so far this year, but currency dealers say the 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. 18.57 billion ($ 121.1 million) this year as of Thursday’s close. They had bought government securities worth a net Rs. 49.2 billion as of 29 November, official data showed.