Rupee ends weaker on importer dollar demand

Reuters: The rupee closed weaker on Wednesday as dollar demand from importers surpassed the sales of the US currency by exporters and banks due to inward remittances, dealers said.

The spot rupee ended at 153.30/38 per dollar, compared with Tuesday’s close of 153.23/30.

“The two state banks were on the buying side - may be to cover some oil bills,” said a currency dealer who did not wish to be named.

The rupee has been under pressure since January after the central bank stopped defending the currency and started buying the dollar to build up the country’s depleted foreign currency reserves.

The island nation had seen Rs. 18 billion ($ 117.49 million) of net inflows into equities this year as of Tuesday’s close, and Rs. 29.1 billion worth inflows into government securities as of 27 September this year, official data showed.

Sri Lanka’s markets are closed on Thursday for a Buddhist holiday.