June 3, 2014 / 9:13 AM / 3 years ago

Rupee falls on RBI intervention, dollar demand

Reuters Market Eye - The rupee is trading at 59.2650/2700 compared with its previous close of 59.1525/1625 after likely intervention from the RBI and on dollar demand from importers.

Cycle rickshaws move past a display of rupees at a roadside currency exchange stall in the old quarters of Delhi June 10, 2013. REUTERS/Anindito Mukherjee/Files

Traders expect the pair to be rangebound, while closely watching foreign fund inflows into local shares.

Earlier, the pair had briefly trimmed gains after the RBI kept interest rates on hold, but the RBI was spotted buying dollars through state-owned banks starting around 59.16 rupee levels.

The market cited little impact from the central bank’s move later to allow banks to equally spread out additional provisioning on unhedged foreign currency exposure in the current fiscal year.

The pair is seen trading in a 59.20 to 59.40 range during the session.

Reporting by Neha Dasgupta

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