Indian rupee rises on fund flows; down 1.8 pct in October
* USD/INR ends at 53.80/81 vs prev close of 53.96/97
* Rupee falls 1.8 percent in October, snapping two successive months of gains
* G20 summit over weekend will be watched for moves in majors
By Subhadip Sircar
MUMBAI, Oct 31 (Reuters) - The Indian rupee rose on Wednesday, but snapped two successive months of gains to fall in October as the euphoria over economic reforms petered out and the central bank kept rates on hold, with global events expected to determine the currency's near-term direction.
Dealers are closely awaiting further developments in the euro zone as well as the Group of 20 nations' meeting over the weekend, where Europe and the United States will be pushed to tackle their debt woes.
Domestically, with key state elections coming up and the winter session of parliament starting later in November, any major reform moves look unlikely in the interim.
For the day, the rupee's gain was largely driven by custodial banks selling dollars on behalf of foreign institutional investors as well as gains in the euro.
Foreign funds have pumped in around $2 billion in equities in October even as the benchmark index saw its biggest percentage fall since May.
"The rupee is likely to remain rangebound in the next few sessions with global events likely to drive the currency's fortunes," said Naveen Raghuvanshi, associate vice-president at Development Credit Bank.
He expects the rupee to trade in a 53.50-54.30 band in the near term.
The partially convertible rupee ended at 53.80/81 p er dollar, higher than its previous close of 53.96/97. It fell to a session low of 54.21, but found support at its 55-day moving average of 54.14. For October, the rupee has fallen 1.8 per c ent.
In the offshore non-deliverable forwards market, the one-month contract was at 54.08 w hile the three-month was at 54.62.
In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 54.08 wi t h a total traded volume at $4.3 bi l lion. (Editing by Jijo Jacob)
- Tweet this
- Share this
- Digg this
- OPEC oil output hits highest since 2012 on Libya, Saudi-Reuters Survey
- Lightning, rain fail to deter resolute Hong Kong protesters
- Kurds seize Iraq/Syria border post; Sunni tribe joins fight against Islamic State
- Obama, Modi work to deepen improving U.S.-India ties
- Obama, Modi discuss trade, climate, Islamic State at White House
U.S. President Barack Obama and Indian Prime Minister Narendra Modi worked to deepen improving ties between their countries on Tuesday, but emerged from their second meeting in two days with little in the way of major agreements. Story | Full Coverage
China final HSBC PMI steady in September on stronger global demand but risks remain Full Article