Rupee ends steady; importer demand weighs

Reuters: The rupee ended steady on Wednesday as greenback selling by exporters offset importer demand for the US currency, dealers said.

The spot rupee ended little changed at 153.45/53 per dollar, compared with Tuesday’s close of 153.45/50.

“Demand from state banks was there, but the rupee ended steady due to some exporter (dollar) sales,” a currency dealer said, requesting anonymity.

Central Bank Governor Indrajith Coomaraswamy had earlier said the rupee was still “over-valued”, and that the monetary authority was buying dollars to avoid any appreciation.

The banking regulator is compelled to buy dollars from the market to meet a reserves target set by the International Monetary Fund (IMF) under a $ 1.5 billion, three-year loan program.

Dealers said a port deal signed during the weekend also helped boost sentiment.