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The Indian rupee dipped slightly on Thursday as dollar buying by state-run banks and the rise in global oil prices kept the local currency under pressure. Dealers say the pair will continue to trade in a narrow range in the immediate future. State-run banks are also mopping up dollars for oil and defence related payments. "Volumes have been low and sentiment, dull. The dollar rupee pair will remain in a narrow range for the rest of this week," said a dealer at a state-run bank.
The partially convertible rupee ended at 60.18/19 per dollar, from its Wednesday closing of 60.12/13. Indian shares rose for a third straight session on Thursday as lenders extended gains. The 50-share Nifty rose 0.2 percent. In the offshore non-deliverable forwards, the one-month contract was at 60.35/40, while the three-month was at 60.82/92.

Copyright Reuters, 2014

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