* Rupee ends at 54.56/57 per dlr vs 54.75/55.76 on Wednesday
* Capital inflows in January continue to support rupee
* Euro rises to session high after Spain bond auction
By Subhadip Sircar
MUMBAI, Jan 10 (Reuters) - The Indian rupee rose for a third
session on Thursday, its biggest winning streak in over a month,
as continued capital inflows helped absorb steady dollar demand
from oil refiners.
The rupee was also helped by a late surge in the euro which
hit a session high in European trade after good demand at a
Spanish bond auction.
Capital inflows into India's outperforming stocks are at
$1.4 billion this year, adding to robust inflows of over $24
billion in 2012.
That has helped the rupee mitigate some concerns about the
current account and fiscal deficits which have been a constant
bugbear for the currency.
Dealers said oil demand, which has been steady around
$300-$400 million on an average daily basis, was being easily
absorbed by inflows.
"The next trigger for the rupee will be the RBI's rate
decision. A cut will be positive," said Sudarshan Bhat, chief
forex dealer at Corporation Bank.
He expects the rupee to trade in a 54.20-55.20 band in the
The partially convertible rupee closed at 54.56/57
per dollar, stronger than Wednesday's close of 54.75/76. It rose
to 54.5650 in session, its strongest level since Jan 3.
The rupee's winning streak matched a similar three-session
gain that ended Dec. 6.
India will release November factory numbers on Friday with
data likely to show that manufacturers barely increased
production in the month.
More crucially, the December inflation data is due on Monday
with a Reuters poll showing wholesale prices likely rose 7.40
In the offshore non-deliverable forwards, the one-month
contract was at 54.90, while the three-month was at 55.47.
In the currency futures market, the most-traded near-month
dollar/rupee contract on the National Stock Exchange, the MCX-SX
and the United Stock Exchange, all closed around 54.78 with a
total traded volume of around $4.8 billion.
(Editing by Prateek Chatterjee)