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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

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