Thursday, 21 November 2013 00:44
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Reuters: The rupee ended steady near its seven-week low on Wednesday as banks and dealers were reluctant to trade at above a level seen desirable by the central bank, currency dealers said.
The spot rupee ended flat at 131.10/15 per dollar. It closed at 131.10/20 last Thursday, near its lowest close since 4 October.
“Everybody is waiting for the budget,” a currency dealer said. “Nobody wants to trade above 131.10 because that level is seen desirable by the Central Bank.”
President Mahinda Rajapaksa, who is also the Finance Minister, will unveil the 2014 Budget on Thursday that is expected to include populist measures ahead of a possible election year as well as some tax hikes to enable the government to further trim its still-large fiscal deficit.
The rupee hit a record low of 135.20 on 28 August, but has managed to stem further losses and has gained 3.10% since then.
