The rupee snapped a four-session fall on Friday, bouncing off the previous' day's 10-1/2-month closing low on a pause in the dollar's rally overseas and some rupee buying by foreign investors' cancelling offshore forwards.
Traders said some exporters, who had been waiting for the rupee to weaken towards the 45-per-dollar level to gain maximum advantage on their remittances, had also come in and sold dollars once they realised the rupee would not weaken more this week.
The partly convertible rupee ended at 44.845/850 per dollar. It gained 0.22 percent from Thursday's 44.945/950, which was its weakest close since 44.985/45.005 on November 26, 2004.
"It was mainly corporates and exporters who were selling once they saw the rupee was unlikely to hit 45 as the central bank had supported that level this week," a dealer at a state bank said.
The central bank had intervened at about 44.965 rupees per dollar in the previous two sessions to support the rupee. Traders said some foreign capital inflows towards a recent share offering by a wind energy producer and lower demand from importers and foreign funds had also helped the rupee to recover. "Despite today's fall in the stock market, we are likely to see foreign fund data next week which will show funds sold a lot less than they did on Thursday," a foreign bank dealer said.
Net portfolio outflows of more than $200 million so far in October amid a stock market correction have dragged the rupee down nearly 2 percent since the start of the month.
Comments
Comments are closed.