Rupee gains slightly on bunched-up $ inflows

Written by Reuters | Mumbai | Updated: Aug 20 2014, 09:37am hrs
The rupee strengthened slightly on Tuesday on bunched up dollar inflows after a four-day weekend and as shares hit a second consecutive record high, but broader gains were capped by good greenback demand from oil importers.

Trading in the foreign exchange market resumed after two trading holidays on Friday and Monday, leading to bunched-up dollar inflows, helping the rupee appreciate.

There was expectation that the rupee will gain due to bunched-up inflows, but there was some oil demand in the market which limited the gains, said Uday Bhat, a foreign exchange dealer with UCO Bank.

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I don't expect the rupee to appreciate much from here. However, the close below 60.70 can technically take the unit to 60.20 levels, he added.

The partially convertible rupee closed at 60.68 per dollar compared with 60.76/77 on Thursday. The unit moved in a tight band of 60.6550 to 60.7825 during the session.