The Indian rupee ended unchanged
on Wednesday as the dollar strength overseas and greenback
buying by state run banks were offset by gains in local shares.
The rupee also did not move significantly after data showed
India's exports in June rose 10.22 percent from a year earlier,
as overall analysts called the numbers mixed.
"Any major reaction to the trade deficit data was not
expected as the numbers were positive on certain fronts and
negative on some others. The rupee will continue to trade in a
narrow range until new cues come in," said Paresh Nayar, head of
FX and fixed income at FirstRand Bank.
The partially convertible rupee ended at 60.12/13
per dollar, unchanged from the Tuesday closing.
The rupee continued to be weighed down by dollar demand from
state-run banks for oil-and defence-related payments and by
gains of the U.S. currency overseas following a comment by
Federal Reserve head Janet Yellen that U.S. rates could rise
sooner if employment continued to improve.
But that was offset by a more than 1 percent gain in the
50-share Nifty index on Wednesday as lenders and
infrastructure-related shares surged after the central bank
exempted long-term bonds raised for the sector from reserve
In the offshore non-deliverable forwards, the
one-month contract was at 60.31/41, while the three-month was at
FACTORS TO WATCH
* Doubts persist about Chinese economic recovery
* New sanctions fear hit Russian equities
* Stocks rose in Europe after China economic data
* Foreign institutional investor flows
* For data on currency futures