The Indian rupee rose for a fourth straight session to a near two-week high on Tuesday on strong foreign inflows into stocks and as global risk sentiment was boosted after China's central bank governor said the yuan's trading band will be widened. Foreign fund inflows into local stocks have already totalled nearly $900 million in November, adding to the rupee's gains after $2.6 billion inflows in October.
Foreign banks have been consistent dollar sellers in recent sessions as they buy into Indian equities. However, dealers said that most of the rupee's gains were lost on consistent dollar demand from state-run oil refiners and other importers. "The rupee held on to the gains on steady selling from exporters and also aided by the comments on yuan trading band widening by China," said Vikas Babu Chittiprolu, a senior dealer with Andhra Bank.
"We will see oil companies bidding when the rupee dips below 62 to the dollar which will check rupee gains," he said. The partially convertible rupee closed at 62.36/37 per dollar, compared with 62.41/42 on Monday. It has gained 2.2 percent in the past four sessions. It rose to 61.87 in session, its highest since November 6. In the offshore non-deliverable forwards, the one-month contract was at 62.97, while the three-month was at 64.05.
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