* Rupee ends at 61.59/60 per dollar vs 61.655/665 on Tuesday
* Month-end defence, private oil demand weighs on rupee -
* Foreigners continue to be buyers in Indian stocks for a
By Subhadip Sircar
MUMBAI, Oct 23 The Indian rupee rose on
Wednesday, but gave up most gains on the back of strong dollar
demand from state-run banks intended to be channelled to pay the
government's defence payment requirements and concerns about
tighter monetary policy in China.
Dollar demand from a large petrochemical company also kept
the rupee's gains in check, after the partially convertible
currency had tracked gains in other emerging market currencies
in the morning after worse-than-expected U.S. monthly jobs data.
A less healthy employment report is expected to force the
Federal Reserve to delay any tapering of its monetary stimulus
until next year.
Still, the impact globally was largely diffused after a
policy adviser to the People's Bank of China told Reuters the
authority may tighten cash conditions in the financial system to
address the inflation risks, while the central bank refrained
from supplying cash to money markets for the second day running.
"Risk correction in global markets rubbed the Indian shores,
pressurising the equities and weakening the rupee. Importers
added to the rupee's woes," said Vikas Babu Chittiprolu, a
dealer at Andhra Bank.
The rupee closed at 61.59/60 per dollar, compared
with 61.655/665 on Tuesday. It traded in a 61.05-61.67 band in
The rupee was also pressured as local shares fell, with the
NSE index falling 0.4 percent due to profit-taking.
Still, on a more positive note, foreign investors continued
to buy into Indian stocks for a thirteenth session on Tuesday,
buying shares worth $129.48 million.
In the offshore non-deliverable forwards, the
one-month contract was at 62, 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 61.71 with a total traded volume of $2.3 billion.
(Editing by Anand Basu)