Rupee firm

The rupee ended firmer on Tuesday, as the demand for the dollar from importers remained slow, traders said. The rupee closed at 110.54 to the dollar as compared to Monday’s closing of 110.55 in the interbank foreign exchange market.

Traders said the currency pair remained flat, owing to the lack of interest from buyers. “Trading was lethargic. However, some importers purchased the greenback to settle their bills,” a forex dealer said. Most traders believed the rupee could maintain the current levels in the coming sessions.

There is sufficient liquidity available in the currency market. But the central bank’s foreign exchange reserves continued to slide on the back of external loan repayments. The rupee stayed almost flat in the open market. It was quoted at 111.80 against the dollar for buying and 112.20 for selling in the kerb market.