Rupee ended slightly higher
against the U.S. unit Thursday as dollar profit-taking and
exporter sales outweighed sustained demand from importers.
The dollar closed at Rs. 102.68, a tad lower from Wednesday’s
Traders said foreign and local banks bought dollars in early
trade pushing the U.S. unit to an intraday high of Rs. 102.72.
They said selling at that level then pulled the dollar down to
trade between Rs. 102.65 and Rs. 102.70 during most of the
Traders expect the dollar to trade higher between Rs. 102.70
and Rs. 102.72 Friday on sustained importer demand.
Secondary bond yields fell on speculation the central bank
may cut policy rates over the short-term in line with easing
inflation, traders said. The bank’s next monthly policy review
meeting is slated for March 15. Bonds maturing Febru-ary 2009
closed down 6 basis points at 11.07%.
The overnight call money rate closed unchanged at 10%, helped
by a sustained liquidity surplus of around Rs. 7 billion and an
absence of borrowings.
– Dow Jones