Rupee falls for second day

Shares fell for a fifth day as dealers booked profits in a market which has outperformed its regional peers in 2012 and seen capital inflows of over $20 billion.

The rupee has been supported in recent sessions by inflows on shares sales by miner NMDC and Bharti Infratel. About 30% of NMDC's $1.1 billion share sale was picked up by foreign investors, sources said.

Bharti's up to $830 million initial public offering was fully covered by Thursday, a day ahead of issue close. The rupee's losses were also caused by a rebound in the global dollar on Thursday as investors looked past an expected Fed outcome and booked profits on short dollar positions.

“The recovery in the global dollar and a fall in stocks just turned the tide against the rupee,” said Hemal Doshi, currency strategist, Geojit Comtrade.

“Unless the $/INR closes below 54.25, it will stay in a 54.25-54.80 range.” The rupee closed at 54.46/47 per dollar, weaker than its Wednesday's close of 54.32/33. Investors are now looking forward to the inflation data on Friday, with a Reuters poll showing a 7.60% rise in October.

In the offshore non-deliverable forwards, the one-month contract was at 54.78, while the three-month was at 55.31.

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