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FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Rupee up after state bank cuts dollar peg

Rupee up after state bank cuts dollar peg

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Melissa Pereira


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
The rupee ended a tad firmer on Tuesday after a state-run bank cut the currency’s peg against the US dollar by 10 cents to allow the exchange rate to appreciate to 133.60, dealers said.


One of the two state banks, through which the Central Bank usually directs the market, sold dollars at 133.60 to keep the rupee steady, they said. However, there was downward pressure on the rupee due to demand for the greenback from importers amid reluctant dollar sales by exporters, the dealers said. The spot rupee ended 10 cents higher at 133.60 on Tuesday, after ending steady for three straight sessions at 133.70/80 per dollar. Some dealers expect the currency to be less volatile until the 17 August parliamentary elections. 
Courtesy: Daily Financial Times 29 July 2015

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