Rupee ends largely steady at 59.76 day before Budget

Written by Reuters | Mumbai | Updated: Jul 10 2014, 07:18am hrs
The rupee ended largely steady on Wednesday as strong dollar sales on hopes of a fiscally-prudent Budget were offset as shares retreated from record highs to fall for a second consecutive session.

Hopes about the Budget were reinforced after the government issued an economic survey calling the fiscal situation worse than it appears and hinted at tough steps to shore up public finances and reduce inflation.

Traders said a fiscally-prudent government and medium- to long-term measures to bring in FDI into the country were likely to be big positives for markets.

The rupee ended at 59.75/76 per dollar compared with 59.78/79 on Tuesday, after trading in a range of 59.67-59.9350.

Dollar sales from foreign banks, which traders attributed in part to expectations of a positive Budget, offset a second consecutive losing session in shares amid concerns markets may have risen too strongly after hitting record highs on Tuesday.