Wednesday, 17 December 2014 00:00
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Reuters: Rupee forwards closed steady on Monday as banks hesitated to sell them beyond the 132.00-per-dollar level due to moral suasion by the Central Bank amid mild importer dollar demand, dealers said.
The four-day forwards or spot-next-next, which were actively traded, closed at 131.99/132.05 per dollar, unchanged from Monday’s close.
Currency dealers expect the rupee to be under downward pressure due to a pick-up in credit growth and imports in a lower interest rate and steady exchange rate regime. However, the trend would be reversed soon, they said.
“We expect the rupee to gain from next week as seasonal imports are expected to be over by this week and remittances are expected to flow in ahead of Christmas,” a currency dealer said.
The spot currency and three-day forwards, or spot-next, were not traded after the Central Bank capped the currency at predetermined levels to prevent volatility, traders said.
Central Bank officials were not available for comment.
Dealers said they expect the rupee to strengthen from this week onwards through to the year end.
Overseas investors sold a net Rs. 3.75 billion worth of Government securities during the week ended 10 December. They sold a net Rs. 43.9 billion ($334.86 million) worth in the 11 weeks through 10 December, data from the Central Bank showed.
