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- dEsPeraTe cRaNky -
he Indian rupee snapped a three-day losing streak and rose on Wednesday as dollar sales by a few custodian banks and some corporates helped, while gains in the domestic stockmarket and other regional peers also cheered.
The partially convertible rupee closed at 47.16/17 per dollar, after rising as high as 47.12 and 0.4 percent stronger than its previous close of 47.35/36. On Tuesday, the rupee dropped as low as 47.3850, its lowest since June 7.
"There were some normal dollar inflows in the market which helped the rupee gain in late trade. The market was stuck long, so some position squaring was seen," said Ashtosh Raina, head of foreign exchange trading at HDFC Bank in Mumbai.
"Don't think there is too much downside possible for the dollar-rupee in the near-term. Think it will trade in a 47-47.30 range in the very near-term," he added.
Indian shares , closed 0.6 percent higher as investors remained bullish ahead of major earnings in the next few sessions, with sentiment boosted by firmer global markets.
Foreign fund flows into and out of the sharemarket are a key factor that influences the rupee's direction. So far in 2010, foreigners have invested a net $8.7 billion in Indian shares, adding to last year's record $17.5 billion.
India's finance minister Pranab Mukherjee said on Tuesday the quantum of capital flows into the country is comfortable and manageable.
"I personally think medium/long run bullishness is intact for the rupee given India will draw capital chasing growth," said Ananth Narayan G.,head of rates and credit for South Asia at Standard Chartered Bank in Mumbai.
Dealers said a few corporates were selling dollars in the market in afternoon trade which helped the rupee.
"The near-term looks bearish for the rupee, but a larger move appears to be on the cards though -- something that easily has a 2-3 percent width. But we will see good two-way moves," said R. K. Gurumurthy, head of treasury at ING Vysya Bank in Mumbai.
Gains in other Asian currencies also helped the local currency.
One-month offshore non-deliverable forward contracts PNDF were quoted at 47.40, weaker than the onshore spot rate, suggesting a bearish near-term outlook.
In the currency futures market INRFUTURES, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX closed at 47.2275 and 47.22 respectively, with the total traded volume on the two exchanges at about $5.2 billion.
The partially convertible rupee closed at 47.16/17 per dollar, after rising as high as 47.12 and 0.4 percent stronger than its previous close of 47.35/36. On Tuesday, the rupee dropped as low as 47.3850, its lowest since June 7.
"There were some normal dollar inflows in the market which helped the rupee gain in late trade. The market was stuck long, so some position squaring was seen," said Ashtosh Raina, head of foreign exchange trading at HDFC Bank in Mumbai.
"Don't think there is too much downside possible for the dollar-rupee in the near-term. Think it will trade in a 47-47.30 range in the very near-term," he added.
Indian shares , closed 0.6 percent higher as investors remained bullish ahead of major earnings in the next few sessions, with sentiment boosted by firmer global markets.
Foreign fund flows into and out of the sharemarket are a key factor that influences the rupee's direction. So far in 2010, foreigners have invested a net $8.7 billion in Indian shares, adding to last year's record $17.5 billion.
India's finance minister Pranab Mukherjee said on Tuesday the quantum of capital flows into the country is comfortable and manageable.
"I personally think medium/long run bullishness is intact for the rupee given India will draw capital chasing growth," said Ananth Narayan G.,head of rates and credit for South Asia at Standard Chartered Bank in Mumbai.
Dealers said a few corporates were selling dollars in the market in afternoon trade which helped the rupee.
"The near-term looks bearish for the rupee, but a larger move appears to be on the cards though -- something that easily has a 2-3 percent width. But we will see good two-way moves," said R. K. Gurumurthy, head of treasury at ING Vysya Bank in Mumbai.
Gains in other Asian currencies also helped the local currency.
One-month offshore non-deliverable forward contracts PNDF were quoted at 47.40, weaker than the onshore spot rate, suggesting a bearish near-term outlook.
In the currency futures market INRFUTURES, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX closed at 47.2275 and 47.22 respectively, with the total traded volume on the two exchanges at about $5.2 billion.
