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Rupee ends firmer at 46.41/$

The rupee ended firmer on Thursday helped by continued dollar sales by foreign funds and importers, dealers said.

Most foreign banks which act as custodials for foreign funds were selling dollars and some importers were booking profits on previously hedged positions, they said.

The rupee ended at 46.40/41 per dollar, compared with Wednesday's close at 46.435/44.

Intra-day report

The rupee gained in early trade after opening slightly weaker on Thursday and dealers said that the currency is likely to trade in a narrow range of 46.40-46.45 against the dollar.

The rupee was quoted at 46.40/41 at 11:30 a.m. after opening at 46.44/46. It closed at a 12-week high of 46.435/44 per dollar and has gained nearly 0.6 per cent in the past eight sessions.

"I do not expect any fresh inflows on Thursday. But if there are any, I expect some dollar bids at 46.40 levels from state-run banks," a dealer in a foreign bank said.

Dealers expect state-run banks, acting on behalf of the central bank to absorb dollar supplies, to check a sharp appreciation of the rupee.

The rupee's gains have come on the back of foreign capital flows which have unexpectedly surged in January and dealers said they expected more investments by foreign funds in Indian stocks and bonds this month.

Data from the stock market regulator showed foreign funds have invested a net $458.2 million in Indian stocks and debt in the first 16 days of January after being net sellers a month earlier.

Some dealers expect dollar remittances from Gulf countries, where a large number of expatriate Indians live, to pick up later in the day. Inflows from these countries have been tepid in December due to the holy month of Ramzan.

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