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Friday July 3, 12:00 PM
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Rupee eases; local stocks, dollar weigh
MUMBAI (Reuters) – The rupee eased on Friday amid a seesawing stock market and in the face of the dollar's gains, which dampened overseas sentiment.
At 10:45 a.m. (0515 GMT), the partially convertible rupee was at 48.09/10 per dollar, off an early low of 48.19, and about 0.3 percent weaker than Thursday's close of 47.95/96.
It had hit 47.74 on Thursday, its highest since June 16.
"Stocks are offering the market no relief. But mostly the rupee's pressured because of the dollar strengthening in cross currency movements," a trader with a foreign bank, said.
India's main share index seesawed after opening 0.7 percent lower on Friday after Asian equity markets slipped and investors held back from taking positions ahead of next week's federal budget.
The rupee was also hit by the dollar's gains after bleaker-than-expected U.S. jobs data.
The dollar index, a gauge of the U.S. unit's performance versus majors, was up about 0.2 percent at 0515 GMT.
Net foreign portfolio inflows of around $7.4 billion since mid-March have helped the rupee bounce back from a record low of 52.2 hit in mid-March.
However, since mid-June foreigners have sold nearly $600 million of local equities.
The index had leapt 49.3 percent in April-June, its biggest quarterly gain in 17 years, in anticipation of an economic rebound.
The government said in a report the economy could grow 7 percent this year and more in coming years if it made sweeping reforms including removal of fuel subsidies, and speeds infrastructure development.
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