Rupee forwards end flat despite dollar demand from importers
Saturday, 6 December 2014 00:25
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Reuters: Rupee forwards closed steady on Friday as tepid dollar selling by exporters offset heavy demand for the greenback from importers, with the Central Bank stepping in to persuade banks to prevent the currency from falling further, dealers said.
The spot currency and three-day forwards, or spot-next, were not traded after the Central Bank capped the currency at predetermined levels to prevent volatility, traders said.
Central Bank officials did not offer comment on whether limits were placed on the rupee’s level.
Dealers said actively traded four-day forwards, or spot-next-next, ended at 131.95/132.00 per dollar, unchanged from Thursday’s close.
“There was steady importer dollar demand due to the festival season and import of vehicles, but due to moral suasion the rupee ended steady,” said a currency dealer.
Overseas investors sold a net Rs. 1.55 billion worth Government securities during the week ended 3 December, the first outflow in three weeks. They sold a net Rs. 40.2 billion ($ 306.64 million) in the 10 weeks through 3 December, data from the Central Bank showed.
