* Rupee ends at 59.51/52 versus 59.385/395 Friday close
* Dealers cite inflows related to Unilever's open offer for
* Foreigners bought $189.15 mln of shares on Fri,
provisional data shows
By Subhadip Sircar
MUMBAI, July 1 (Reuters) - The Indian rupee came off near
two-week highs to close lower on Monday, ending a two-day
winning streak, as corporate inflows and a strong domestic stock
market was outweighed by a late surge in dollar demand from oil
Still, the rupee has recovered substantially from a record
low of 60.76 hit on June 26 as a revival of global risk appetite
and rumoured inflows related to Unilever's open offer for its
Indian unit kept the rupee bid.
Sentiment for the rupee was also supported as provisional
data showed foreign institutional investors bought shares worth
11.24 billion rupees ($189.15 million) on Friday, snapping 13
days of sales, though they remained net sellers in debt.
Investors are also hoping the government would soon announce
additional economic reforms centering on opening up more sectors
for foreign investments after last week approving a hike in
domestic gas prices.
"The rupee gained on corporate inflows and NDF
(non-deliverable forward) related selling during the first half,
but good bids from oil importers pulled down the rupee later,"
said Hari Chandramgethen, chief of forex trading at South Indian
"I, however, expect positive sentiment on the rupee this
week on likely positive stock sentiment and exporters selling
dollars at higher levels."
The Indian rupee closed at 59.51/52, compared with
its previous close of 59.385/395. It rose to a session high of
58.9650, a level last seen on June 19.
Several dealers cited flows related to Unilever's
$5.4 billion open offer for its Indian unit,
which started on June 21.
The rupee was also supported as Indian shares rose for a
third consecutive session on Monday to close at their highest in
nearly one month.
Flows were matched by a late surge in dollar demand from
state-run banks, mainly from oil, and demand from custodian
In the offshore non-deliverable forwards, the
one-month contract was at 59.89, while the three-month was at
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 59.81 with a total traded volume of $5.3 billion.
(Editing by Anupama Dwivedi)