Rupee ends steady despite importer dollar demand

Reuters: The rupee ended steady on Monday as a state-run bank, through which the Central Bank usually directs the market, sold dollars at a flat rate of 133.75 despite demand for the greenback from importers, dealers said.

The rupee closed at 133.75 per dollar, after the state-owned bank raised the currency’s peg against the dollar by 25 cents on Thursday to allow the exchange rate to depreciate to 133.75.

“The rupee ended steady on state bank (dollar) sales. But the (downward) pressure is there,” said a currency dealer.

Currency dealers said continued foreign outflows from government securities, at Rs. 16.75 billion ($ 125 million) in the week ended 5 August, has also put pressure on the currency.