The Indian rupee came under pressure on Monday as foreign investors repatriated funds returned after recent initial share offerings, with concerns about central bank intervention further weighing on sentiment. The rupee ended at 39.44/45 per dollar, higher than the day's low of 39.48, but losing ground from the previous finish of 39.35/36.
It hit 39.16 in November, its highest in 10 years. "The outflows from the IPOs were the dominant factor today, but what's remarkable is that the rupee has not fallen further," said a senior dealer with a private bank.
Earlier this month Reliance Power, a unit of Anul Dhirubhai Ambani's group, raised a record $3 billion through an initial share sale that generated sizeable foreign interest, and dealers said rebates worth $2 billion had left India so far.