Rupee gains for third session on inflows, euro

MUMBAI Thu Jan 10, 2013 5:26pm IST

An Indian one rupee coin is seen in this picture illustration taken in Mumbai April 30, 2012. REUTERS/Vivek Prakash/Files

An Indian one rupee coin is seen in this picture illustration taken in Mumbai April 30, 2012.

Credit: Reuters/Vivek Prakash/Files

Related Topics

MUMBAI (Reuters) - The rupee rose for a third session on Thursday, its biggest winning streak in over a month, as continued capital inflows helped absorb steady dollar demand from oil refiners.

The rupee was also helped by a late surge in the euro which hit a session high in European trade after good demand at a Spanish bond auction.

Capital inflows into India's outperforming stocks are at $1.4 billion this year, adding to robust inflows of over $24 billion in 2012.

That has helped the rupee mitigate some concerns about the current account and fiscal deficits which have been a constant bugbear for the currency.

Dealers said oil demand, which has been steady around $300-$400 million on an average daily basis, was being easily absorbed by inflows.

"The next trigger for the rupee will be the RBI's rate decision. A cut will be positive," said Sudarshan Bhat, chief forex dealer at Corporation Bank.

He expects the rupee to trade in a 54.20-55.20 band in the near term.

The partially convertible rupee closed at 54.56/57 per dollar, stronger than Wednesday's close of 54.75/76. It rose to 54.5650 in session, its strongest level since Jan 3.

The rupee's winning streak matched a similar three-session gain that ended December 6.

India will release November factory numbers on Friday with data likely to show that manufacturers barely increased production in the month.

More crucially, the December inflation data is due on Monday with a Reuters poll showing wholesale prices likely rose 7.40 percent.

In the offshore non-deliverable forwards, the one-month contract was at 54.90, while the three-month was at 55.47.

In the currency futures market, the most-traded near-month dollar/rupee contract on the National Stock Exchange, the MCX-SX and the United Stock Exchange, all closed around 54.78 with a total traded volume of around $4.8 billion.

(Editing by Prateek Chatterjee)

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

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

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