The rupee closed weaker on Tuesday due to dollar demand from importers, but the currency is expected to steady in the near term, dealers said.
Rupee forwards were active, with two-week forwards ending at 153.15/25 per dollar, compared with Monday’s close of 152.95/153.10.
“There is some importer demand and we see the currency stabilising at these levels,” said a currency dealer who requested anonymity.
“Given the Central Bank’s spot currency reference rate at 151.90, two-week forwards should be around 152.80/90.”
The currency was under pressure due to higher dollar demand from importers and selling of government securities by foreign investors until early this month.
Foreign investors have, however, turned net buyers of both equities and government securities since early this month.
Overseas investors have net bought Rs. 5.23 billion worth of equities in the last 17 consecutive sessions. They also net bought government securities worth Rs. 1.87 billion in the week ended 12 April.
However, they have net sold Rs. 62 billion worth of government bonds so far this year.
Sources : DailyFT