Rupee up on exporter dollar sales, subdued importer demand

Saturday, 3 December 2016 01:01 - - {{hitsCtrl.values.hits}}

Reuters - The rupee ended marginally higher on Friday as exporters sold dollars while demand for the greenback from importers was subdued with the year-end festival season setting in, dealers said.

Rupee forwards were active while spot-next forwards ended at 148.75/85 per dollar, compared with Thursday’s close of 149.00/02.

“There were a lot of (dollar) conversions both from individuals and corporates. Corporate volumes were a bit high,” said a currency dealer, asking not to be named.

Dealers said importer dollar demand has eased.

The spot rupee was hardly traded, but was quoted at 148.10/90.

However, some dealers expect the rupee to be under pressure on fears of U.S. President-elect Donald Trump’s economic policies leading to a stronger greenback thereby triggering foreign fund outflows.

They expect the pressure to ease when seasonal inward remittances begin and on expected inflows, including the $200 million after the swap agreement with China Development Bank.

Foreign investors have net-sold Rs. 42.1 billion worth of government securities in the seven weeks that ended on 30 November, ahead of an expected Fed rate hike in December.