Rupee gains; dollar inflows help

Reuters Market Eye - The rupee gains sharply, coming off lows since morning, at 59.23/25 versus Thursday close of 59.57/58. Dealers cite dollar inflows related to Essar Steel's $1 billion overseas borrowing.

Some long USD trades also unwinding which helping the INR.

Some USD selling by state-run banks seen, which some ascribe to the Reserve Bank of India, but no consensus in market.

Essar Steel has raised $1 billion through external commercial borrowings (ECB), which would help it save 4.5 billion rupees annually in interest, the company said on Thursday.

(Reporting by Subhadip Sircar)