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Rupee ends steady at 46.63/$

The Indian rupee recovered its initial loses and closed steady at rs 46.62/63 on fresh dollar supply by exporters and foreign funds at the interbank foreign exchange market on Thursday.

Intra-day report

The rupee dipped marginally in early deals on Thursday on dollar buying by banks, but dealers said fresh inflows from foreign funds would keep it stable around current levels.

The rupee eased to 46.642/650 per dollar in some morning deals, compared to Wednesday's close of 46.620/625.

But volumes were moderate and trade was ranged, dealers said.

Traders said they had expected some early weakness in the rupee as banks reversed Wednesday's dollar sales. Banks sell dollars on Wednesday to benefit from weekend swap differentials and repurchase them on the next two days.

Dollar supplies from foreign funds investing in Indian stock markets outstrip import demand currently, dealers said.

Foreign portfolio inflows have surged in the past week. They have made net purchases of $277.1 million of Indian equity and debt so far in January, and traders expect them to invest further this month as part of their 2001 portfolio allocations.

Dealers expect state-run banks, who often act on behalf of the central bank, to mop up dollar supplies and prevent sharp appreciation in the exchange rate.

Currency traders see the rupee trading in a range between 46.60-67 per dollar on Thursday.

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