The rupee closed at 90.29 to a dollar, down by three paisas from the previous day’s closing of 90.26 in the interbank forex market. “Significant dollar supply from the financial institutions was witnessed due to liquidity shortage in the money market,” a dealer said.
To meet the liquidity requirement, the central bank on Friday injected Rs218.1 billion into the banking system. “Despite improved supplies, concerns over the International Monetary Fund (IMF) repayment and oil import payments prevented any gain in the local currency value,” the dealer added.
The rupee fell sharply during the current fiscal year due to weak economic conditions and it eroded its value by five percent from 85.96 on June 30 to the present level against the greenback.
Experts said that the rupee would remain under pressure due to high demand for the dollar as hefty repayments to the IMF are due next month. They said that oil import payments would also jack up the dollar demand due to severe energy crisis in the country.
The interbank forex market started the day in the range of 90.23 and 90.28. Most of the trades were seen at different levels with the dollar witnessed a high of 90.32 and a low of 90.25. The exchange rate in the kerb market also increased to 91.00/91.50 from the previous day’s closing of 90.70/91.20.
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