• Home
• /
• Business

Rupee ends three-day gain; importers may sell currency

Refiners such as Indian Oil Corp. may have increased dollar purchases after crude oil rose yesterday to the highest in a month. Payments for imports are typically scheduled near the end of the month, said Sudarshan Bhatt, chief currency trader at state-owned Corporation Bank in Mumbai.

“Dollar demand from importers, including oil companies, is stronger,” Bhatt said.

The rupee was little changed at 39.4225 per dollar as of the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. It fell as low as 39.45 earlier. The currency’s 12.3 per cent gain in 2007 is the biggest in at least 34 years and is the second- best performance among Asian currencies.

The rupee may fall as low as 39.50 in the coming days, Bhatt said. The median estimate of 23 strategists in a Bloomberg News survey is for the currency to rise to 39 by the end of March.

Growth in India’s imports exceeded gains in exports this year, causing the current account deficit to widen. Shipments from abroad rose at an average 25 percent in the first 10 months, compared with a 17 per cent increase in overseas sales.