Rupee ends steady on State bank’s dollar sales

Reuters: The rupee ended steady on Wednesday a day after a State-run bank cut the currency’s peg against the dollar by 10 cents to allow the exchange rate to appreciate to 133.60, dealers said.

The spot rupee ended steady at 133.60 on Wednesday.

One of the two State banks, through which the Central Bank usually directs the market, sold dollars at 133.60 to keep the rupee steady, they said.

However, there was downward pressure on the rupee due to demand for the greenback from importers amid reluctant dollar sales by exporters, the dealers said.

“There is importer demand ahead of the long weekend but the rupee is trading steady due to State bank (dollar) sales,” said a currency dealer.

Markets will be closed on Friday for a Buddhist religious holiday.

Some dealers expect the currency to be less volatile amid a possible mild appreciation until the 17 August Parliamentary elections.