Rupee steady, stocks watched for direction

The rupee is trading at 59.90/91 compared to its previous close, tracking largely unchanged domestic sharemarket with mixed Asian currencies failing to provide any clear direction.

The BSE Sensex will be watched during the day for cues on foreign fund flows which have been a key factor aiding the rupee in recent sessions.

Traders expect gains in the rupee to be capped around 59.60 levels as the Reserve Bank of India will likely step up dollar buying around there, two traders say.

The RBI is suspected to have been buying dollars in recent sessions to shore up its foreign exchange reserves, which now stand at $298.64 billion, their highest since December 2011.