Indian rupee ends flat at 62.07 vs US dollar after erasing initial losses

Jan 09 2014, 18:34 IST
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The Indian rupee recovered from initial losses and settled at the overnight closing level of 62.07 against the US dollar. Reuters The Indian rupee recovered from initial losses and settled at the overnight closing level of 62.07 against the US dollar. Reuters
SummaryIndian rupee rebounded to a high of 61.9650 on late US dollar selling by exporters before ending at 62.07.

sellers today. Range-bound trading is expected to continue in the near-term," said Vikas Babu Chittiprolu, a senior foreign exchange dealer at state-run Andhra Bank.

Foreign funds, which turned net buyers of over $850 million worth of bonds in December after a six month hiatus, have so far in 2014 purchased a net $215.50 million. Debt related inflows were also seen on Thursday, dealers said.

Government bonds rose as investors were assuaged by comments from a central bank deputy governor that a proposed debt switch may happen only in the next fiscal year starting April.

In equities, foreign buying has waned with investors having bought only a net $60.70 million so far this month, after purchasing over $20 billion in 2013.

The partially convertible rupee closed at 62.07/08 per dollar, unchanged from its previous close. It rose to 61.9650 during the session, its strongest since Jan. 2.

The Indonesian rupiah led gains among emerging Asian currencies on Thursday as investors covered short positions in regional units, while South Korea's won rose after the central bank left rates steady.

In the offshore non-deliverable forwards, the one-month contract was at 62.42 while the three-month was at 63.27.

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