Rupee ends higher on dollar selling by bank, low importer demand

Reuters: The rupee ended firmer on Wednesday as a private bank sold dollars amid tepid demand for the greenback from importers, dealers said.

The rupee ended at 140.55/65 per dollar, compared with Tuesday’s close of 141.05/141.10.

Dealers said the two State-run banks through which the central bank directs the market were not seen selling dollars, but a local private bank sold the US currency, which helped the rupee to trade higher.

“The rupee ended firmer as a private bank sold dollars. Not sure whether it’s exporter (dollar) sales, but that eased the pressure on the rupee,” said a dealer who declined to be identified.

Dealers also said the demand for dollars from importers is reducing ahead of the Government’s Budget in November.

The rupee hit a record low of 141.40 per dollar on Sept. 28, but has recovered over the past few days after a State-run bank sold dollars.

Japanese Prime Minister Shinzo Abe pledged about 45.4 billion yen ($377 million) in infrastructure aid to Sri Lanka on Tuesday in a meeting with his counterpart, Ranil Wickremesinghe.