Monday, February 7, 2011

Rupee at 3-week high increased by dollar inflows

The Indian rupee increase to three-week highs on Tuesday, holded by dollar inflows and strong Asian peers, but importer demand for dollars was seen cutting the local unit's rise.

At 9:57 a.m. (0427 GMT), the partly convertible rupee was at 45.3575/3650 per dollar, stronger than Monday's finishing of 45.475/4850. In early deals, it rose to 45.35 per dollar -- its peak since Jan. 19.

"There is a positive sentiment from Asian currency strength this morning and sense some inflows as well in the market," said Rohan Naik, head of foreign exchange dealing at Standard Chartered Bank in Mumbai.

He also said an extra upside to the rupee could be curbed by importer demand for the dollar at current levels and sees the rupee trading in the variety of 45.30-45.50 per dollar intra-day.

Most Asian currencies were stronger compared to the dollar on Tuesday. The dollar index, a gauge of the greenback's performance against six major currencies, was losing 0.13 percent at 77.930 points.

Foreign institutional investors buy Indian shares worth $49.17 million on Friday. This was the second directly session when foreigners bought shares after being net supplier in the earlier five sessions.

They have pulled out $1.3 billion this year until Feb. 4 on alarm over high inflation. Indian shares rose 0.3 percent in choppy early trade on Tuesday, with financials and outsourcers important the rise. [.BO]

One-month offshore non-deliverable onward contracts were quoted at 45.51, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contract on the National Stock Exchange and MCX-SX was at 45.50 and the United Stock Exchange was at 45.4975, with the sum traded amount at $572 million.

No comments:

Post a Comment