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:

Economic Pulse

REUTERS SHOWCASE

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Bird Flu Scare

Bird Flu Scare

India orders culling after bird flu outbreaks in Kerala.  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

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