Wednesday, 12 March 2014 01:26
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Reuters: The rupee ended steady for a third day running on Tuesday as the currency surrendered early gains on high importer dollar demand in late trading while there was no intervention from the Central Bank, dealers said.
The spot rupee ended flat at 130.55/57 per dollar, retreating from 130.50/55, its highest intraday level since 7 November, touched in early trade due to remittances and bank dollar sales.
The currency has gained 0.38% in the last nine sessions through Tuesday, Thomson Reuters data showed.
A Central Bank official early in the day told Reuters there was no need to intervene in the market on Tuesday due to lack of volatility.
The rupee has been on a rising trend since 27 February amid weak demand for dollars from importers, dealers said.
Economists and dealers have said the rupee has unexpectedly appreciated in the last two weeks despite its historic tendency to fall in March and April due to festive import demand.
The market, however, expects downward pressure due to high imports for the traditional new year in mid-April and outflows from equities, though the depreciation is expected to be mild as the Central Bank has strong reserves to defend the rupee.
Foreign investors sold a net Rs. 5.29 billion worth of stocks in 22 straight sessions through Tuesday, and sold a net Rs. 4.57 billion worth of Government securities for the week ended 5 March.
The rupee has gained about 3.6% since it hit a record low of 135.20 on 28 August last year. It lost 2.5% in 2013.
