Rupee off lows, share gains help

Dealer's say with RBI buying dollars, rupee appreciation to be capped

The rupee is trading at 60.18/19 versus its close of 60.14/15 on Wednesday and off the session low of 60.27 as gains in the domestic sharemarket hurt sentiment for the greenback.

 

Gains in other Asian currencies versus the dollar also limited a very sharp rise in the pair despite month-end dollar demand from oil and other importers.

 

Traders will watch the domestic sharemarket for cues on foreign fund flows. The Sensex is trading up 0.5%, hitting record highs for a fourth consecutive session.

 

The pair is expected to hold in a 60.05 to 60.40 range during the day with the RBI likely to step up its dollar purchases if the currency tries to breach the 60 mark, dealers say.