* Rupee ends flat at 54.52/53, unchanged from Wednesday's
* March inflation data due on Monday
* Local shares fall, Infosys slumps
By Subhadip Sircar
MUMBAI, April 12 The Indian rupee ended flat on
Friday as a slump in local stocks after a weak revenue guidance
from IT bellwether Infosys, was evened out by hopes the central
bank would cut interest rates next month after data showed
slowing consumer inflation.
The rupee gained a modest 0.5 percent for the week, which
has been marked by concerns about outflows after foreign
investors sold a net $37.29 million in equities in April and a
net $510.57 million of debt, according to the latest available
Traders are looking ahead at wholesale price inflation on
Monday which will be key in setting expectations ahead of the
Reserve Bank of India's May 3 policy review, after cutting
interest rates at each of its two previous meetings this year.
Wholesale prices have likely risen an annual 6.40 percent in
March, a Reuters poll showed.
"The rupee gave up early gains as the stock markets fell on
Infosys and the global dollar strength against other currencies.
If the inflation data gives a positive surprise on Monday, it
will build up rate cut hopes which will be positive for the
currency," said Sudarshan Bhat, chief of currency trading at
The partially convertible rupee ended at 54.52/53
per dollar, unchanged from its close on Wednesday. Earlier in
the session it had risen to 54.34, a 1-week high.
Currency markets were shut on Thursday for a local holiday.
Local shares recorded their biggest single-day fall since
late February, after Infosys Ltd gave a
much-lower-than-expected revenue guidance for 2013/14.
The rupee found some early support after data showed factory
output rose more than expected in February, while retail
inflation slowed in March.
In the offshore non-deliverable forwards, the
one-month contract was at 54.82 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
about 54.68, with a total traded volume of $4.4 billion.
(Editing by Sunil Nair)