Rupee gains on remittances

Reuters - The rupee closed firmer on Friday as year-end remittances and selling of the U.S. currency by exporters outpaced importer dollar demand, dealers said.

The spot rupee ended at 153.05/10 per dollar, compared with Thursday’s close of 153.30/35.

“Today there were lot of inflows for salaries and bonuses,” a currency dealer said asking not to be named.

“There were not many importers today. We hope the rupee will trade around 153.00 levels this month.”

The rupee has lost 2.3% so far this year, but currency dealers say the dollar demand has slightly waned, lending support to the rupee.

The market has been waiting for more clarity over a foreign exchange management act introduced by the Government last month.

Foreign investors have net bought equities worth Rs. 18.38 billion ($120.05 million) this year as of Friday’s close. They had bought government securities worth a net Rs. 49.2 billion as of 29 November, official data showed.