Wednesday, 6 November 2013 00:00
-
- {{hitsCtrl.values.hits}}
Reuters: The rupee slipped on Tuesday, hovering around three-week closing low due to year-end seasonal importer demand for dollars, dealers said.
The rupee could come under downward pressure due to year-end importer demand for the greenback until mid December and then could reverse the trend due to expected inflows from foreign remittances by Sri Lankan expatriates during the festive season, dealers said.
The spot rupee fell to 131.15/20 during the day on importer dollar demand, but closed at 131.05/15, its lowest close since 15 October on late exporter conversions and down from Monday’s close of 131.00/10 per dollar.
Analysts, however, said the currency was still under falling trend in the long term due to lack of foreign inflows from exports and foreign direct investments and the dollars keeping the rupee steady were mainly from external borrowing.
Central Bank Governor Ajith Nivard Cabraal on Friday said the rupee could come under pressure due to importer dollar demand, for consumer-related goods ahead of the December festival season, but the market could manage the demand “itself without much intervention”.
The rupee hit a record low of 135.20 on 28 August, but has managed to stem further losses and is up 3.13% since then.
