Rupee edges down

The rupee slipped 10 paisas against the dollar on Wednesday due to the demand for import payments, dealers said. The local currency ended at Rs158.52 against the greenback from the previous day’s closing of Rs158.42 in the interbank foreign exchange market. The dealers said importers held their positions for dollar purchase owing to the announcement of the monetary policy.

The rupee witnessed significant decline at the opening; however, lower-than-expected reduction in the policy rate help the rupee made some recovery later in the day, the dealers said, adding that the slowdown in outflow of hot money helped the rupee recover during the day. The dealers said during the last few days the hot money outflow was witnessed at an average of $200 million.

However, the outflow of hot money was $47.25 million on March 17, 2020. Apparently, the outflow was eased after the announcement of the monetary policy. Market experts said since the rate cut was not significant; therefore, the investment in treasury bills for foreign investors was still attractive. The foreign currency market initiated in the range of Rs158.10 and Rs158.40. it recorded the day’s high of Rs158.85 and the low of Rs158.40.

In the open market, the exchange rate remained unchanged. The dollar buying and selling was recorded at Rs157.50 / Rs158.50, the same previous day’s closing, in cash ready market.