Rupee ends firmer on dollar selling by banks, exporters

Reuters:  The rupee ended slightly firmer on Wednesday as banks sold dollars on behalf of foreign investors and as exporters sold the greaenback amid a lack of demand from importers for the U.S. currency, dealers said.

The spot rupee ended at 145.40/45 per dollar, slightly firmer compared with Tuesday’s close of 145.43/48. One-week rupee forwards ended at 145.65/70, compared with the previous day’s close of 145.60/70.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

“There were some dollar sales by foreign investors to buy government securities in the latter part of the day,” a currency dealer said, asking not to be named.

Dealers said seasonal importer demand would pick up from mid-October.

Central bank Governor Indrajith Coomaraswamy said last week that the currency was not under upward pressure as capital inflows had not been of sufficient magnitude to exert such pressure.

The central bank has largely not intervened to defend the rupee ever since a dual-tenure sovereign bond issue raised $1.5 billion in July.