Rupee up on inflows; more gains seen

MUMBAI Mon Dec 24, 2012 5:50pm IST

A shopkeeper poses for a picture as he counts Indian currency notes at his shop in Jammu May 16, 2012. REUTERS/Mukesh Gupta/Files

A shopkeeper poses for a picture as he counts Indian currency notes at his shop in Jammu May 16, 2012.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

MUMBAI (Reuters) - The rupee reversed its early losses to close stronger against the dollar on Monday in thin trade, aided by custodial flows and dollar sales by software exporters.

Traders expect the rupee to continue to be supported in the last week of the year, potentially trading in a 54.20 to 54.60 range, on the back of inflows into local stocks and debt, along with continued dollar sales by exporters.

"Capital flows will be there, which will prop the rupee. There will be more equity flows and investments in debt," said N.S. Venkatesh, treasurer at IDBI Bank.

The partially convertible rupee closed at 54.95/96 per dollar versus its previous close of 55.06/07, after touching a low of 55.21 in early trade on oil-related buying.

Still, traders warned against expecting strong gains in the rupee in the near term, given the continued uncertainty over the U.S. "fiscal cliff".

Month-end dollar demand from oil and gold importers is also likely to cap the rupee's gain.

Foreign exchange markets will be closed on Tuesday for Christmas.

In the offshore non-deliverable forward market, the one-month contract was at 55.25 while the three-month was at 55.79.

In the currency futures market, the most-traded near-term dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange closed at around 54.99 with a total traded volume of $3.86 billion.

(Editing by Subhranshu Sahu)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage