* USD/INR ends at 54.1750/1850 vs 54.41/42 on Monday
* Consumer price inflation rises 10.91 pct in Feb
* RBI likely to cut repo rate by 25 bps - Reuters poll
By Subhadip Sircar
MUMBAI, March 12 The Indian rupee rose on
Tuesday helped by foreign fund inflows, but gains were kept in
check as some traders scaled back hopes of a rate cut by the
central bank after consumer price inflation showed a spike and
factory output rose more than expected.
India's annual consumer price inflation inched
up to 10.91 percent in February from 10.79 percent a month ago,
data released on Tuesday showed.
Separately, India's industrial output expanded for the first
time in three months in January, growing more than estimated,
and showing some signs of recovery in economic growth.
The rupee tumbled from the day's high as some dealers
trimmed hopes of a rate cut with data showing retail inflation
continued to remain stubbornly high, while the economy showed
"Some traders who had gone short dollars saw stop-losses
getting triggered after the IIP and CPI data. But some selling
by foreign banks kept rupee losses in check," said Sudarshan
Bhat, chief forex dealer at Corporation Bank in Mumbai.
The partially convertible rupee closed at
54.1750/1850 per dollar versus its previous close of 54.41/42, a
fourth day of gains out of five. It traded in a 54.17-54.40 band
However, most economists who participated in a Reuters poll
still expect the RBI to cut rates by 25 basis points on March
The rupee may find some support from the government's stake
sale in National Aluminium Co this week, which is
expected to fetch about $260 million.
In the offshore non-deliverable forwards, the
one-month contract was at 54.60, 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 at
around 54.37 with a total traded volume of $5.6 billion.
(Editing by Jijo Jacob)