Indian rupee edges up but snaps two-week gaining streak

Written by Reuters | Mumbai | Updated: Jul 25 2014, 23:34pm hrs
RupeeThe Indian rupee ended marginally higher on Friday.(PTI)
The Indian rupee ended marginally higher on Friday, as heavy dollar demand from importers to meet month-end commitments was offset by greenback sales from custodian banks, continuing a pattern of largely range-bound trading.

Still, the rupee fell 0.3 percent for the week, posting its first weekly loss in three in a week dominated by flows rather than major events or factors.

Traders said they will continue to monitor movements in other Asian currencies and moves in domestic shares for clues in the near-term.

"There were some heavy dollar inflows with custodian banks which helped offset the demand from oil firms and other importers," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank.

"Geopolitical tensions will be the key trigger to watch out for as there are no other factors internally. The 59.80 to 60.50 range will continue to hold."

The partially convertible rupee closed at 60.1025/1125 per dollar, compared with 60.12/13 on Thursday. The unit hit 59.98 on Thursday, its strongest since July 14.

Traders broadly expect the unit to hold in a range of 59.60 to 60.50 next week.

The rupee continues to be supported by good foreign buying in Indian shares and debt markets, although that was offset by importer demand for dollars.

India's broader NSE index fell on Friday after hitting a record high for a third consecutive session on profit-taking in blue-chips.

In the offshore non-deliverable forwards, the one-month contract was at 60.26 while the three-month was at 60.74.