* Rupee ends at 54.21/22 per dlr vs 54.38/39 on Tuesday
* Dealers expect inflows from Jet Airways stake sale to
* Indian govt pitches for rating upgrade with S&P
By Subhadip Sircar
MUMBAI, April 25 (Reuters) - The Indian rupee rose on
Thursday, snapping two sessions of losses, on hopes of renewed
foreign fund inflows on the back of a buoyant stock market,
which gained for a fourth straight session.
Foreign funds have poured in over $500 million in equities
in the last four sessions, according to latest data from the
capital market regulator.
The inflows will bring some relief to the currency after
they seemed to taper off in the early part of this month.
Dealers also expect the rupee to get some support from
inflows related to the stake sale by Jet Airways to
Gulf carrier Etihad Airways.
The Gulf carrier will take a 24 percent stake for $379
The rupee's gains were however kept in check by dollar
demand from importers, particularly of oil, which normally picks
up during month-end, dealers said.
"Initially market sold dollar on expectation of inflows and
stronger euro and stocks. But good bids from oil and corporates
kept the market rangebound," said Hari Chandramgethen, chief
foreign exchange dealer at South Indian Bank.
He expects the rupee to trade in a range of 53.80-54.80 to
the dollar in the near term.
The rupee was also helped by the dollar's weakness against
the euro, hurt by a batch of soft data that have raised concerns
about the pace of economic recovery in the United States.
The partially convertible rupee closed at 54.21/22
per dollar, stronger than its close of 54.38/39 on Tuesday.
Financial markets were closed on Wednesday for a local holiday.
Despite talks of early elections, Finance Minister P.
Chidambaram said on Wednesday the government would take more
steps to revive growth in the next two-four months.
The Indian government pitched for a rating upgrade on
Thursday at a meeting with ratings agency Standard & Poor's, a
top finance ministry official said, citing steps taken by it to
control a high fiscal deficit and revive investments.
In the offshore non-deliverable forwards, the
one-month contract was at 54.38, while three-month was at 54.96.
In the currency futures market, the most-traded
near-month dollar/rupee contracts on the National Stock
Exchange, the MCX-SX and the United Stock Exchange all closed
around 54.2550, with a total traded volume of $5.8 billion.
(Editing by Subhranshu Sahu)