Rupee ends weaker on importer dollar demand

Reuters: The rupee ended weaker on Monday as importer dollar demand surpassed selling of the US currency by exporters, dealers said.

The spot rupee ended at 145.90/146.00 per dollar, weaker from Thursday’s close of 145.75/85. One-week forwards ended at 146.12/22, compared with the previous close of 145.90/146.00.

Markets were closed on Friday for a Buddhist religious holiday.

The spot rupee is usually managed by the Central Bank and market participants use the forward market levels for guidance on the currency.

“It looks like the seasonal importer dollar demand has come in to the market,” said a currency dealer, asking not to be named.

Dealers had expected seasonal importer demand to pick up from mid-October.

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.