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The Indian rupee drifted away from a near decade high on Wednesday, weighed by concerns that a recession in the United States would spur a wave of risk reduction, though capital inflows remained buoyant, dealers said.
The partially convertible rupee ended at 39.29/30 per dollar, slipping from the previous finish of 39.265/275 but within striking distance of a decade-high of 39.16 hit in November.
"The global sentiment is beginning to affect the market a bit, but the flows continue," said a dealer with a foreign bank. Dealers also kept a watchful eye on the central bank, which is widely believed to have bought about $5 billion in the past two weeks in a bid to prevent the rupee from rising rapidly.

Copyright Reuters, 2008

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