Rupee little changed amid exporter dollar conversion in late trade

Reuters: The rupee ended little changed on Friday as dollar selling by exporters and inward remittances towards the end of trading offset importer demand for the greenback, dealers said.



The rupee ended at 141.05/10 per dollar, compared with Thursday’s close of 141.05/15.

Dealers said the rupee would gradually fall due to high import demand and lower exporter conversions.

Analysts expect Finance Minister Ravi Karunanayake to increase import taxes when he presents the 2016 Budget scheduled on 20 November, to discourage shipments into the country.

Apart from imports, heavy Government spending is also putting pressure on the rupee, dealers said.

The rupee hit a record low of 141.40 per dollar on 28 September, but recovered slightly after a State-run bank sold dollars.