Rupee edges up on exporter dollar sales, inward remittances

Reuters:  The rupee closed firmer on Monday on exporter dollar sales and greenback inflows from inward remittances, though the market still expects the local currency to be under downward pressure due to seasonal imports, dealers said.

The spot rupee closed at 146.55/65 per dollar, compared with Friday’s close of 146.85/95.

“Dollar sales by exporters and late inward remittances helped ease the downward pressure. But the outlook remains the same and seasonal importer demand could pressurise the currency to fall,” a currency dealer said, asking not to be named. Dealers said there was no intervention by the central bank and trading volume was strong.

The central bank is under pressure from the International Monetary Fund (IMF) to continue rebuilding international reserves and maintain exchange rate flexibility to develop the foreign exchange market further.