Rupee ends steady for 5th session on State bank dollar sales

Reuters: The rupee ended steady for a fifth straight session on Monday as a State-run bank kept the selling rate at 133.80 to the dollar amid demand for the greenback from importers, dealers said.

The spot currency closed unchanged at 133.80 on Monday, after it fell for the first time in seven sessions on 13 July following the State-owned bank’s decision to raise the dollar-selling rate by 0.15% to 133.80.

“There is importer (dollar) demand, but rupee ended steady on State bank dollar sales,” said a currency dealer.

Dealers said the market witnessed an active trade in three-month and six-month rupee forwards, while yields in some of the longer term bonds fell by around five basis points after a $1.1 billion currency swap agreement with the Reserve Bank of India boosted sentiment.

Despite depreciation pressure, the Central Bank last week kept the currency from falling further through the sale of Treasury bonds, development bonds and T-bills, dealers said.