Rupee steady as importer dollar demand offsets exporter sales

Wednesday, 17 August 2016 00:01 - - {{hitsCtrl.values.hits}}

Reuters: The rupee ended steady on Tuesday as dollar sales by exporters were offset by importer demand for the US currency, dealers said.

The spot rupee ended at 145.50/55 per dollar, unchanged from Monday.

“Exporter (dollar) sales were there. But the rupee ended steady as a state bank bought dollars to cover some import bills including a petroleum one,” a currency dealer said, asking not to be named.

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

Since a $ 1.5 billion inflow from a dual-tenure sovereign bond issue, the Central Bank has largely not intervened in the currency market to defend the rupee. Central bank officials were not available for comment.

One-week rupee forwards ended at 145.72/77 per dollar, compared with Monday’s close of 145.72/75.

Foreign investors bought a net Rs. 66.9 billion ($ 460.11 million) worth of government securities between 29 April and 10 August, Central Bank data showed.

The Central Bank on 28 July raised its main interest rates by 50 basis points each in a surprise move aimed at curbing stubbornly high credit growth that is adding to concerns about inflationary pressures.