Rupee rises on exporter dollar sales

Reuters: The rupee ended firmer on Monday as dollar supply due to exporter greenback sales and inward remittances surpassed importer demand for the US currency, dealers said.

The spot rupee ended at 153.50/60 per dollar, up from Friday’s close of 153.73/78.

“There were sizable exporter (dollar) sales. The foreign banks are also selling and with the port deal the rupee will strengthen on expected inflows and positive sentiment,” a currency dealer said, requesting anonymity.

“There was state (banks’) demand, but there were sizable exporter dollar sales which helped the rupee.”

Central Bank Governor Indrajit Coomaraswamy 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.