Rupee ends up; $ sales outweighs imports
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 Rs. 102.70.

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 session.

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



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