* Rupee ends at 60.13/14 vs 60.215/225 Wednesday close
* India cbank chief says not to protect any particular FX
* INR seen rising around 4 pct to 57.50 in 12 months -
By Subhadip Sircar
MUMBAI, July 4 The Indian rupee eked out minor
gains on Thursday, snapping three sessions of losses, but
sentiment was dented after the Reserve Bank of India chief said
the bank would not defend any particular exchange rate, which
dealers read as likely absence of any heavy intervention.
RBI chief Duvvuri Subbarao's comments on the exchange rate,
which would be read as innocuous in other circumstances, led to
a sharp sell-off in the rupee, which the market took as a signal
that any significant intervention was unlikely despite the
currency hovering near record lows.
The absence of any strong comments from the governor to
support the rupee was also a dampener for the markets, dealers
The rupee is likely to take its next cue from the U.S.
non-farm payrolls data, due Friday, which will be an important
data point for the Federal Reserve's decision to slow down its
"The RBI governor's comments on not protecting any
particular rupee levels and concerns on the deficit did not go
down well with the currency market," said Uday Bhatt, a senior
manager at UCO Bank.
"The non-farm payrolls data will be the key. If it's strong,
the rupee may see 61 levels."
The rupee was supported by a strong stock performance with
local stocks gaining 1.2 percent.
The partially convertible rupee closed at 60.13/14,
compared with its previous close of 60.215/225. It fell to as
much as 60.38 after the governor's comments.
The battered Indian rupee will remain under pressure against
the U.S. dollar over the next year as a wide current account
deficit and policy inaction dissuades foreign investment into
the country, a Reuters poll showed.
In the offshore non-deliverable forwards, the
one-month contract was at 60.51, while the three-month was at
In the currency futures market, the most-traded
near-month dollar/rupee contracts on the National Stock
Exchange, the MCX-SX and the United Stock Exchange all closed
around 60.46 with a total traded volume of $4.9 billion.
(Editing by Anand Basu)