Rupee breaks past 63; foreign investors sell shares

Reuters Market Eye - The rupee is at 63.02/63.04 versus its close of 62.93/94, after foreign institutional investors (FIIs) sold a net 598 million rupees in shares on Thursday to snap a 32-day buying streak that totalled 238.84 billion rupees as per exchange and regulatory data.

Traders say continued weakness could spark intervention from the central bank.

Rallies in U.S. and Japan stock markets are also sparking talk of a shift by global investors to developed markets, with emerging countries with current account deficits such as India seen as vulnerable to future Fed tapering.

USD/INR gains also reflecting demand from state-run oil companies, traders say.

Still, the Nifty gains 0.5 percent, recovering from its biggest single-day percentage fall in nearly two months on Thursday, putting a lid on USD/INR gains.

The rupee is seen in a range of 62.70/63.30 for the session, traders said.

(Reporting by Archana Narayanan)