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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Pharma

REUTERS SHOWCASE

Jan Dhan Yojna

Jan Dhan Yojna

Modi: Banking for all to end "financial untouchability".  Full Article 

Power Outage

Power Outage

India may face blackouts as coal shortage cuts power output  Full Article 

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Tracking Monsoon

Tracking Monsoon

Monsoon forecast to be better for crops next week  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Monetary Policy

Monetary Policy

BofA says RBI may cut rates by 75-100 bps starting early 2015  Full Article 

Rare Earth Output

Rare Earth Output

India to chip in with 5 pct of global rare earth output  Full Article 

Reuters India Mobile

Reuters India Mobile

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