Rupee forwards end steady; CB sees stable currency in December
Rupee forwards closed steady for a fourth straight session on Thursday, as the Central Bank’s moral suasion forced banks to cap trading at 132.00 per dollar.
Central Bank Governor Ajith Nivard Cabraal said the rupee would be stable during this month.
“There is no change in our outlook and we expect it will be stable,” Cabraal told Reuters. “We have seen upward and downward movements in the rupee, but they are not at any threat level.”
The four-day forwards or spot-next-next, which were actively traded, closed at 131.98/132.05 per dollar, little changed from Wednesday’s close of 131.99/132.02.
The spot currency and three-day forwards, or spot-next, were not traded after the Central Bank capped the currency at predetermined levels to prevent volatility, traders said.
“There was dull trade and we expect the sluggishness to continue until the end of this month because of the year-end season,” a currency dealer said.
Overseas investors sold a net Rs. 3.75 billion worth of Government securities during the week that ended on 10 December. They sold a net Rs. 43.9 billion ($ 334.86 million) worth in the 11 weeks through to 10 December, data from the Central Bank showed.
Stable currency in december
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