The Indian rupee rose on Tuesday, snapping a two-session losing streak as demand for global risk assets was bolstered by better-than-expected US and German economic indicators, and talk Spain may soon ask for a bailout. However, domestic factors capped broader gains, given concerns about whether the Reserve Bank of India will cut interest rates on October 30, thus potentially bolstering growth while increasing foreign investor inflows into Indian assets.
The partially convertible rupee closed at 52.87/88 per dollar, stronger than its previous close of 53.015/0250, as per the State Bank of India closing rate. In the offshore non-deliverable forwards market, the one-month contract was at 53.04 and the three-month at 53.53. In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 52.98 with a total traded volume of around $4.5 billion.
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