Indian rupee gains for 3rd session on inflows, euro

Thu Jan 10, 2013 5:11pm IST

Related Topics

* Rupee ends at 54.56/57 per dlr vs 54.75/55.76 on Wednesday

* Capital inflows in January continue to support rupee

* Euro rises to session high after Spain bond auction

By Subhadip Sircar

MUMBAI, Jan 10 (Reuters) - The Indian 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 Dec. 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)




Global Economy

Global Economy

EU leaders agree investment package to boost economy.  Full Article 

Oil Prices

Oil Prices

Brent steady below $60, heads for 4th weekly decline as oversupply persists.  Full Article 

Chinese Economy

Chinese Economy

China revises up size of economy in 2013 by 3.4 percent.  Full Article 

Reuters Exclusive

Reuters Exclusive

Google aiming to go straight into car with next Android – sources.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

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