Search the Internet            Tips

Rupee up slightly at 46.62/$

The dollar ended mildly cheaper against the rupee at Rs 46.6200/6250 per dollar, but the pound sterling turned slightly dearer at Rs 69.50/52 per pound at the close of the interbank forex market.

Intra-day report

The rupee gained against the dollar in modest volumes in early Wednesday trade and dealers said that they expected it to trade with a firm undertone on technical factors and on a steady supply of dollars from foreign investors.

At 10:32 a.m., the rupee was quoted at 46.58/59 per dollar, after opening little changed at 46.62/63.

The rupee has now gained around 0.3 per cent from its weekend close.

Dealers said the immediate outlook for the rupee was firm as foreign currency inflows were strong.

"We have already seen strong purchases by foreign funds this month and there seems to be no large demand outstanding," said a dealer at a foreign bank.

Foreign funds have made net purchases of $234.1 million of Indian debt and equities so far in January, reversing their net sales of $98.4 million the previous month.

"Now that 46.60 has been broken, the next level is 46.55," said a dealer at a private bank.

"At the moment, the rupee seems to be on a firm footing, the problem is that the market is not aware of the size or timing of the really large payments which tend to be routed through state-run banks or the central bank," he said.

Dealers said the rupee's gains on Wednesday were also on account of technical factors.

Currency traders usually sell dollars on Wednesday to benefit from the weekend swap differentials and buy them back on the next two days.

Tell us what you think of this report