Rupee ends down on importer dollar demand

Wednesday, 9 September 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The rupee fell on Tuesday as importer dollar demand outpaced greenback selling by exporters in the absence of intervention by the Central Bank through State-run lenders, dealers said.

The rupee fell 3% on Friday to a record low of 139.00 per dollar after the Central Bank effectively floated the currency by ceasing to quote its own reference rate.

The spot rupee ended 0.36% weaker at 138.30/50 per dollar, compared with Monday’s close of 137.80/85.

“Exporter dollar selling is there, but importer demand is more,” said a currency dealer asking not to be named.

Some dealers said the central bank, which usually directs the market through State-run banks, did not interfere in the market on Tuesday.