January 29, 2013 / 8:18 AM / 5 years ago

MARKET EYE-USD/INR at 1-week low after RBI rate cut; Axis flows

* USD/INR trades at 53.64/65 versus its previous close
of 53.91/92, after earlier hitting a session low of 53.5475, its
weakest since Jan. 22.
* Traders say sentiment for the rupee turning positive after the
central bank cut both the repo rate and the cash reserve ratio
by 25 basis points each at its policy review. 
* Some traders also say rupee boosted by dollar inflows from the
Axis Bank share sale to qualified institutional investors.
 
* "The rate cut was most or less certain, so that is not the
only reason pushing the rupee up. There seems to be Axis flows
in the market as well," a senior dealer with a private bank
said. Two other dealers also cited Axis Bank-related inflows.

 (swati.bhat@thomsonreuters.com/;
swati.bhat.thomsonreuters.com@reuters.net)

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