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:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Record Profit

Record Profit

Apple iPhone sales trample expectations as profit sets global record  Full Article | Related Story 

Obama In India

Obama In India

In parting shot, Obama prods India on religious freedom.  Full Article 

Restructuring

Restructuring

Max India to be split into three separate companies.  Full Article 

India’s Male Tenor

India’s Male Tenor

India’s lone male tenor wants to ‘Indianise’ opera  Full Article 

Indian Equities

Indian Equities

Hornbill raising $250 mln to invest in equities - partner.  Full Article 

Ratings Downgrade

Ratings Downgrade

S&P downgrades Russia's sovereign credit rating to "junk".  Full Article 

Facebook Outage

Facebook Outage

Facebook takes blame for service outages, which hit wider Web.  Full Article 

Reuters India Mobile

Reuters India Mobile

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