* Rupee ends at 55.23/24 per dlr vs 55.07/08 Fri close
* Credit Suisse says hard to be 'structurally' optimistic
* Shares give up early gains, end down 0.47 pct
By Subhadip Sircar
MUMBAI, Jan 7 The Indian rupee fell to an over
one-month low on Monday, extending its losing streak to a third
session, dragged down by steady dollar demand from oil refiners
and a fall in local stocks.
The recent bout of weakness in the rupee comes after data
released last week showed the country's current account deficit
widened to a record high in the September quarter and after
Federal Reserve minutes last week were seen as casting doubt
over future U.S. monetary stimulus.
Credit Suisse, despite calling India's economy in a
"cyclical sweet spot", said it was hard to be 'structurally'
optimistic about the rupee, given the large inflows required to
produce a balance of payments surplus.
"The pressure on the rupee is from dilution in bearish
undertone on the USD post Fed's halt to QE4 and fundamentals of
the rupee with CAD (current account deficit) at over 5 percent
being weak," said Moses Harding, head of asset-liability
management at IndusInd Bank.
"Over all, the near-term outlook is for consolidation at
54-56 with bias into higher end."
The partially convertible rupee closed at 55.23/24
per dollar, weaker than its Friday close of 55.07/08. It had
fallen to 55.32 during the session, its lowest since Nov. 29.
Traders described solid greenback demand from oil companies
during the session, which pressured the rupee. Indian stocks
also snapped a four-day winning streak to fall for the first
time in 2013, ending down 0.47 percent.
Still, foreign fund flows have continued to remain strong in
India with $725 million of inflows in the week ended Jan. 4, the
highest among the Asia equity markets tracked by Nomura.
In the offshore non-deliverable forwards, the
one-month contract was at 55.57 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 55.4750 with a total traded volume of $4.95 billion.
(Editing by Subhranshu Sahu)