Indian rupee gains, awaiting macro data for cues

Wed Apr 10, 2013 5:12pm IST

Related Topics

* Rupee ends at 54.52/53 per dollar vs 54.58/59 on Tuesday

* Factory data, retail inflation awaited on Friday

* Foreign funds sellers in equities, debt for five sessions

By Subhadip Sircar

MUMBAI, April 10 (Reuters) - The Indian rupee rose on Wednesday as domestic shares recovered from a five-day slump, though concerns about recent heavy foreign outflows and dollar demand from oil importers kept gains in the local currency in check.

Investors are also growing cautious ahead of the February industrial output data and March consumer inflation due on Friday, which will provide important cues ahead of the central bank's monetary review on May 3.

The Reserve Bank of India has cut interest rates twice already so far this year, but investors are split on whether the central bank will ease again next month.

"The cues are mixed. Headwinds are from the lack of confidence in macro fundamentals and risk of FIIs pull-out from the equity market," said Moses Harding, head of asset-liability management at IndusInd Bank.

"However, rupee gets strong support from very high premium and robust flows into debt capital account," Harding said.

The partially convertible rupee closed at 54.52/53 per dollar, marginally stronger compared with its Tuesday's close of 54.58/59. It traded in a 54.40-54.5650 band in the session.

Debt and currency markets will be closed on Thursday for a local holiday.

Foreign investors have now sold a net total of $156 million in Indian shares in the five trading sessions to Tuesday and a net total of $1 billion in domestic debt over the same period, according to regulatory data.

Dollar/rupee forward premiums continue to remain high, though it came off near 14-year highs hit on Tuesday.

In the offshore non-deliverable forwards, the one-month contract was at 54.82 while the three month was at 55.45.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at about 54.65, with a total traded volume of $3.6 billion. (Editing by Anand Basu)

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

Consumer Confidence Index

REUTERS SHOWCASE

Deal Talk

Deal Talk

Exclusive - Lupin, U.S. firms weigh bids for GSK's mature drugs: sources  Full Article 

Classifying Banks

Classifying Banks

RBI to start announcing too-big-to-fail banks in Aug 2015  Full Article 

Corruption Probe

Corruption Probe

India to probe corruption in healthcare after TV sting.  Full Article 

Food Scandal

Food Scandal

Starbucks, Burger King dragged in as China food scandal spreads.  Full Article 

Bigger iPhones

Bigger iPhones

Apple asks suppliers to produce up to 80 mln large-screen iPhones - WSJ.  Full Article 

Bali Trade Deal

Bali Trade Deal

India keeps world guessing in countdown to landmark trade pact deadline.  Full Article 

Bangalore Sex Abuse

Bangalore Sex Abuse

Modi's BJP puts political twist on local sex abuse case   Full Article 

Yahoo to buy Flurry

Yahoo to buy Flurry

Yahoo to buy analytics startup Flurry to bolster mobile ad business.  Full Article 

Wholesale Biz

Wholesale Biz

Wal-Mart adds $102.9 million in Indian wholesale business in June.  Full Article 

Reuters India Mobile

Reuters India Mobile

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