Rupee ends little changed; ECB meet watched

It closed at 61.92 per dollar compared with 61.90 on Wednesday

The rupee ended little changed on Thursday, as gains in domestic shares were offset by caution ahead of the European Central Bank (ECB) policy meeting later in the day.

Although the ECB is not expected to announce immediate actions such as a potential plan to buy corporate bonds, it is expected to downgrade growth and inflation forecasts.

Further, U.S. November non-farm payrolls data due on Friday will also be watched.

Traders said relatively healthy domestic shares and potential support from the Reserve Bank of India would likely prevent the rupee from falling too much compared to other Asian currencies.

"Even if the rupee weakens from hereon, there will be buying support at 62.30/40 levels. So the downside for the currency in the immediate term is in a way limited," said Surendran A.V., head of treasury at Dhanlaxmi Bank in Mumbai.

The partially convertible rupee closed at 61.9250/9350 per dollar compared with 61.9050/9150 on Wednesday.

The local unit saw some support after the Nifty hit a record high on continued hopes for global monetary stimulus measures.

Trading volumes could take a hit on Friday, as staff at state-run lenders in the Western region, including Mumbai, will be off work. Bank unions across India are pressing for early wage increases through a four-day relay strike action.

In the offshore non-deliverable forwards market, the one-month contract was at 62.18/28, while the three-month was at 62.70/80.