Rupee to dollar: Indian currency turns weak as local shares gain; seen range-bound

Written by Reuters | Updated: Jun 2 2014, 17:17pm hrs
Indian rupee erased all gains to turn weaker against the US dollar on the day at 59.0925/0975 from its previous close of 59.10/11, tracking strength in local shares and as banks were spotted selling dollars on behalf of corporate clients.

Overseas investors bought Indian shares worth 29.77 billion rupees ($503.8 million) on Friday, which includes about $364 million from the Canada Pension Plan Investment Board increasing its stake in Kotak Mahindra Bank provisional exchange data shows.

The net purchases come after foreign investors had sold in five out of six sessions until Thursday.

The pair seen in a tight range during the session ahead of RBI's monetary policy review. * All but three of the 52 economists polled by Reuters expect the RBI to hold key policy rates steady in its monetary policy review on Tuesday.

The pair seen trading in 59.05 to 59.20 range during the session.