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Tuesday November 24, 08:12 PM
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Rupee extends gains even as stocks dip
By Anurag Joshi
MUMBAI (Reuters) - The Indian rupee strengthened on Tuesday, unwinding early losses as exporter selling of dollars on a view the currency was set to gain further outweighed the impact of a dip in the stock market.
The rupee ended at 46.37/38 per dollar, off an early low of 46.6450, and 0.20 percent above Monday's close of 46.465/475. It had touched an intraday high of 46.36.
After hitting a near one-month high of 46.0 early last week, the rupee fell to a one-week low of 46.75 on Friday and has since traded around the middle of that range this week.
"Exporters pressed dollar sales at 46.50 levels. A few banks with short rupee positions unwound their positions after stocks did not fall to the extent it was anticipated in the morning," said a senior trader with a foreign bank.
The main share index fell 0.3 percent and traders said the market, which has risen nearly 8 percent this month, was facing resistance with the pace of global recovery yet to show momentum.
Foreigners have bought about $15.3 billion of stocks in 2009, helping the rupee recover from a record low of 52.2 per dollar touched in early March, and a rising stock market raises expectations of further inflows.
Last year, net outflows of more than $13 billion had pushed the rupee down by a fifth.
The dollar rose in Asian trading as investors sold currencies associated with risk, and traders said that checked the rupee's rise.
One-month offshore non-deliverable forward rupee were quoting at 46.39/49 per dollar, close to the onshore rupee rate.
In currency futures, the most traded near-month contracts on the National Stock Exchange (^NSEI : 4781.4 -11.25
) and MCX-SX were at 46.40 on both exchanges, from Monday's 46.50.
(Editing by John Mair)
(For more news on Reuters Money visit http://www.reutersmoney.in)
