Friday, 4 April 2014 00:46
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Reuters: The rupee closed firmer on Thursday after being defended through six-straight sessions as banks sold dollars to meet customer demand and remittances ahead of the festive seasons, dealers said.
The spot rupee ended at 130.63/65 per dollar, up from Wednesday’s close of 130.70/75.
“There were not much of demand for dollars. We have seen remittances coming in and banks sold dollars due to festive (rupee) demand,” said a currency dealer asking not to be named.
The local currency was steady at 130.70 per dollar for the last six sessions as dealers were reluctant to trade the local currency beyond 130.70 per dollar through Wednesday due to moral suasion by the Central Bank.
But they said the depreciation pressure is expected to ease due to expected inflows from remittances that will prompt dollar selling by banks.
Dealers said lack of credit demand for imports will help reduce downward pressure on the rupee.
The currency has gained 0.31% since 27 February, but has lost 0.11% so far this year, Thomson Reuters data showed.
