The Indian rupee firmed slightly on Tuesday, finding support as local shares snapped a three-day losing streak but then contained by demand for dollars from crude refiners. The partially convertible rupee ended at 46.80/81 per dollar, off an intraday low of 46.86 and slightly above its previous close of 46.84/85.
"There was reasonable demand from refiners, which cut the rupee's strength. For tomorrow, I have a forecast in the range of 46.75 and 46.85," said a senior trader with a foreign bank. Until mid-December, foreigners were buyers of a net $16 billion worth of Indian equities this year, according to Nomura. That buying has helped lift the rupee off a record low of 52.2 per dollar in early March. Foreigners sold more than a net $13 billion of shares last year, when the rupee fell by a fifth.