.jpg?w=670&h=900)
The rupee rose for a third consecutive session on Tuesday as expectations for more reforms continued after the government announced it would auction coal blocks, but broader gains were capped by a rising dollar globally.
The government on Monday announced plans to open up the coal industry to private players, two days after it unveiled fuel reforms on Saturday, pushing domestic shares higher for their third session of gains.
Still, traders expect trading in the rupee to remain muted ahead of a holiday-shortened week, with global factors remaining key for intra-day direction.
Markets are closed Thursday and Friday for the Diwali holidays. "There was some dollar buying seen in the morning but otherwise it held pretty much rangebound," a senior dealer with a private bank said. The partially convertible rupee closed at 61.31/32 per dollar compared with 61.36/37 on Monday.
The rupee was also somewhat supported after emerging Asian currencies edged up on Tuesday after China's factory output rose slightly better-than-expected in September.
But the dollar regained some ground later in the day as the euro fell after several sources told Reuters the European Central Bank was considering buying corporate bonds on the secondary market.
In the offshore non-deliverable forwards, the one-month contract was at 61.58, while the three-month contract was at 62.18.
Photograph: Illustration by Uttam Ghosh/Rediff.com
