Rupee ends stronger tracking shares

MUMBAI Fri Jun 6, 2014 8:18pm IST

Cycle rickshaws move past a display of rupees at a roadside currency exchange stall in the old quarters of Delhi June 10, 2013. REUTERS/Anindito Mukherjee/Files

Cycle rickshaws move past a display of rupees at a roadside currency exchange stall in the old quarters of Delhi June 10, 2013.

Credit: Reuters/Anindito Mukherjee/Files

Related Topics

MUMBAI (Reuters) - The rupee rose on Friday, tracking a rally in domestic shares to record highs, but broader gains were capped as the Reserve Bank of India (RBI) was spotted buying dollars intermittently through the session to cap gains.

Overseas investors bought shares worth a net 13.69 billion rupees on Thursday, provisional exchange data showed, buying for a fifth straight day and bringing their total purchases to $8.3 billion so far this year.

But intervention from the RBI is keeping a lid on rupee gains, sending the currency down 0.1 percent for the week, its second consecutive weekly loss against the dollar.

"The rupee should be held by RBI in a tight range. Ideally it should have been much stronger than it is," said Ashtosh Raina, head of forex trading at HDFC Bank.

The partially convertible rupee closed higher at 59.17/18 per dollar versus 59.33/34 per dollar on Thursday.

The RBI's dollar purchases in the spot market and the corresponding paying in the forwards to offset the impact on liquidity have been pushing up the forward premiums.

The one-year premium closed at 501.25 points, after hitting 504.25 points during the session, not far from a near two-month high of 506.25 points hit on Tuesday.

The rupee benefited as the two main indexes surged more than 1 percent to mark record highs on continued optimism about policy reforms by the new government.

In the offshore non-deliverable forwards PNDF, the one-month contract was at 59.30 while the three-month was at 59.86.

(Editing by Anupama Dwivedi)

FILED UNDER:

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Pharma Deal

Pharma Deal

Sun Pharmaceutical wins U.S. approval to buy Ranbaxy  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

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