Rupee ends lower on importer dollar demand

Reuters: The rupee closed slightly weaker on Wednesday as dollar demand from importers surpassed selling of the US currency by exporters, dealers said.

The spot rupee, which traded at 153.15 per dollar during the day, recovered to end at 153.00/10, but still marginally weaker from Tuesday’s closing level of 152.95/153.05.

“There was importer demand. We have seen some exporter conversions latter part of the day,” said a currency dealer requesting anonymity. The rupee has been under pressure since January after the central bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.

The island nation has seen Rs. 17.7 billion ($ 115.65 million) of net inflows into equities this year as of Wednesday’s close, and Rs. 17.3 billion worth inflows this year into government securities as of 20 September, official data showed.