Rupee wedged in tight band; foreign fund inflows seen

Reuters Market Eye - The rupee continues to trade higher on the day at 62.37/38 versus its close of 62.50/51 on Monday, aided by some dollar inflows with a few corporates, but demand from oil firms limits further gains.

The pair has traded in a 62.28 to 62.5350 range so far during the session but has been mostly wedged between 62.34 to 62.40 levels over the last two hours.

A broadly weaker dollar also hurts sentiment for the pair. The index of the dollar against six major currencies down 0.3 percent.

Oil firms, the largest buyers of dollars in the domestic currency market, typically buy more during the month-end when import commitments are due.

Weak domestic shares also help sentiment for the pair. Shares trading down 0.6 percent, ahead of the November derivatives contracts expiry later this week.

(Reporting by Swati Bhat)