* Exporters, custodian banks sell dollars, boost INR
* Rupee to trade in 51.50-53.50/dlr range in medium
* Slight rebound in the euro from session lows also aids
By Swati Bhat
MUMBAI, Oct 11 (Reuters) - The Indian rupee snapped a
four-day losing streak on Thursday, boosted by dollar sales from
exporters and a late rebound in the domestic share markets which
likely brought some foreign fund inflows.
Traders said the sell-off seen in the rupee over the last
four days was a bit exaggerated thus prompting exporters to
liquidate their dollar holdings starting 53.10 per dollar
Investors will now closely scrutinise India's factory output
due on Friday. India's industrial output likely grew a modest
1.1 percent annually in August after barely growing at all in
July, indicating weak domestic and global demand, a Reuters poll
"Stock markets turned positive bringing in some inflows
while exporters also sold. Euro also gained a bit. I am now
looking at around 52.50 levels," said Sudarshana Bhat, chief
dealer with state-run Corporation Bank.
"Tomorrow's IIP numbers are also expected to be slightly
positive, so that will also help the rupee. I broadly expect a
53.25-50 (range) to be the top for the pair while the lower side
may be limited at 51.50 levels," Bhat added.
The partially convertible rupee closed at
52.6850/6950 per dollar, 0.7 percent stronger compared to its
Wednesday's close of 53.0450/0550. The unit moved in a wide
range of 52.63 to 53.16 during the session.
At the day's low, the rupee had lost around 2.7 percent of
its value since its close last Thursday.
Indian shares rose as expectations for strong earnings sent
Infosys and HDFC Bank higher a day ahead of
The gains were expected to have led to dollar selling from
custodian banks, while exporters were also spotted selling the
greenback during the session.
Long positions in the Indian rupee shrank to about
a third of the level two weeks ago, a Reuters survey of traders
In the offshore non-deliverable forwards market, the
most-traded one-month contract was around 52.85 while
three-month was at 53.34.
In the currency futures market, the most-traded near-month
dollar/rupee contracts on the National Stock Exchange, the
MCX-SX and United Stock Exchange all closed at around 52.74 with
a total traded volume at around $5.76 billion.
(Editing by Anand Basu)