The rupee recovered from early lows on Thursday helped by foreign investment in the Indian stock market and less demand for dollars among importers ahead of the US trade figures for September due at 1330 GMT.
The partially convertible Indian rupee finished at 45.77/78 per dollar, off an early low of 45.85 but 0.07 percent stronger than the previous close of 45.80/81.
"There was good selling (of dollars) by foreign banks and talk of some stock market-related inflows. But oil companies are there to buy (dollars) at dips and that is preventing the rupee from rising sharply," said a dealer at a private-sector bank.
Oil companies and importers have been bidding for dollars in recent sessions on expectations that rising US interest rates will drive the US unit higher.
The Indian unit slipped to a 13-month intra-day low of 46.06 on Tuesday but suspected central bank intervention and good capital inflows into local stocks helped the currency recover.
Latest capital market data showed foreign funds had bought a net $22.1 million of Indian equities on Wednesday, taking their total purchases to more than $375 million this month.
The rupee was weighed down as the overseas funds had sold more than $800 million of local stocks in October. The market was, however, wary after comments from Indian authorities that the rupee's recent movement had been orderly, which analysts said indicated they were comfortable with its fall.
Comments
Comments are closed.