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Indian rupee witnesses range-bound trading, closes at 60.10 against dollar

Dealers attributed the domestic currency's fall to gains made by the dollar against other currencies overseas and fresh demand for the American unit from importers.

twitter-logoPTI | July 25, 2014 | Updated 18:18 IST
Rupee witnesses range-bound trading, closes at 60.10

The Indian rupee ended marginally higher on Friday, as heavy dollar demand from importers to meet month-end commitments was offset by Greenback sales from custodian banks, continuing a pattern of largely range-bound trading.

The partially convertible rupee closed at 60.1025/1125 per dollar, compared with 60.12/13 on Thursday. The unit hit 59.98 on Thursday, its strongest since July 14.

In early trade on Friday, the rupee fell marginally by five paise to 60.17 against the US dollar at the Interbank Foreign Exchange amid lower opening in the domestic equity market.

However, the rupee fell 0.30 per cent for the week, posting its first weekly loss in three in a week dominated by flows rather than major events or factors. Traders said they will continue to monitor movements in other Asian currencies and moves in domestic shares for clues in the near-term.

Traders broadly expect the unit to hold in a range of 59.60 to 60.50 next week.

"There were some heavy dollar inflows with custodian banks which helped offset the demand from oil firms and other importers," said Vikas Babu Chittiprolu, a senior foreign exchange dealer with state-run Andhra Bank. "Geopolitical tensions will be the key trigger to watch out for as there are no other factors internally. The 59.80 to 60.50 range will continue to hold," he added.

The domestic currency continues to be supported by good foreign buying in Indian shares and debt markets, although that was offset by importer demand for dollars. India's broader NSE index fell on Friday after hitting a record high for a third consecutive session on profit-taking in blue-chips.

In the offshore non-deliverable forwards, the one-month contract was at 60.26 while the three-month was at 60.74.

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