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

GDP Preview

GDP Preview

Indian economy warms in after-glow of Modi's triumph   Full Article 

Pharma Sector

Pharma Sector

In race for bigger margins, drug makers willing to lose the India "advantage".  Full Article 

Markets This Month

Markets This Month

Tata Motors, M&M top Sensex gainers  Full Article 

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Reuters Poll

Reuters Poll

Economy likely grew faster in June quarter  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Reuters India Mobile

Reuters India Mobile

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