Rupee recovers from 1-week low; corps sell dollars

MUMBAI Fri Mar 14, 2014 5:37pm IST

An employee counts rupee currency notes inside a private money exchange office in New Delhi July 5, 2013. REUTERS/Adnan Abidi/Files

An employee counts rupee currency notes inside a private money exchange office in New Delhi July 5, 2013.

Credit: Reuters/Adnan Abidi/Files

Related Topics

MUMBAI (Reuters) - The rupee recovered from one-week lows to end largely unchanged on Friday, as signs of continued strong foreign buying in the share and debt markets helped offset global concerns about military tensions in Ukraine and about China's economy.

Despite the gains, the rupee was showing signs of waning momentum after a powerful rally that sent the currency to its strongest against the dollar since early August on Tuesday.

For the week, the partially convertible currency fell 0.2 percent, snapping a two-week winning streak, despite data showing sharply easing consumer and wholesale inflation and a slight uptick in industrial output.

Whether the rupee can regain that momentum will largely depend on foreign investors, who have been net buyers of more than $2 billion in shares over the previous 20 sessions and of $2.3 billion in bonds in March.

A Reuters poll Thursday showed that long positions in the rupee tripled compared with two weeks ago and rose to their highest level in two years.

"Big dollar selling by some corporates and a late recovery in stocks helped the rupee recover. I think we may see the appreciation trend continuing going into 60.50," said Uday Bhatt, senior dealer at UCO Bank.

The partially convertible rupee closed at 61.19/20 per dollar compared with 61.17/18 on Thursday on the back of good corporate demand for the currency from an engineering company.

That allowed the currency to recover after it had slipped to a one-week low of 61.55 to the dollar in early trade.

Although the influence of global factors has waned somewhat, traders say they would still monitor developments, especially as tensions resurfaced in Ukraine.

A recent batch of weak Chinese data has also accentuated worries about the health of the world's second biggest economy.

Indian markets are closed on Monday for a public holiday.

In the offshore non-deliverable forwards, the one-month contract was at 61.67 while the three-month was at 62.39.

(Editing by Anupama Dwivedi)

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