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Rupee ends at 11-week high of 46.49/$

The rupee ended at a 11-week high on Tuesday, extending the gains of the past few trading sessions, as foreign direct and portfolio investment continued to be strong, dealers said.

The rupee ended at 46.485/495 per dollar, a level not seen since October, and sharply firmer than Monday's close at 46.53/54.

Dealers said foreign investment has been heavy in recent weeks and the absence of dollar bids from state-run banks also helped the rupee rise.

On Tuesday, a large European bank and a south-based state-run bank were dollar sellers on behalf of exporters.

Dealers said import demand was seen around 46.50, levels around which the market expected the central bank to intervene through state-run banks.

In recent weeks, a cement firm received foreign currency for the sale of its stake, while firms in the steel and fertiliser sectors are also believed to have received foreign investment.

Foreign funds have invested a net $387 million in Indian equity and debt markets so far this month after being net sellers in December. Dealers said the total investment in January, direct and portfolio, could be around $700 million.

Intra-day report

The rupee was little changed in early deals on Tuesday amid thin dollar supplies after the US markets holiday, dealers said.

At 11:20 a.m., the rupee was quoted at 46.535/545 per dollar, slightly off its opening level of 46.545/555 and compared to Monday's close of 46.53/54.

Dealers said dollar supplies were lower since there were no nostro credits from the US markets which were closed on Monday for Martin Luther King Jr day. Currency traders see the rupee trading in a range between 46.50-46.60 per dollar.

The rupee is expected to firm later in the day if dollar supplies from corporates and foreign funds pick up, dealers said.

Foreign funds have invested a net $387 million in Indian equity and debt markets so far this month after being net sellers in December.

State-run banks were also seen mopping up dollars around 46.50 on Monday. They normally act on behalf of the central bank.

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