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Business News/ Market / Stock-market-news/  Rupee closes flat at 60.11 after hitting over 1-week high
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Rupee closes flat at 60.11 after hitting over 1-week high

The rupee had strengthened to 59.99 a dollar level, after opening at 60.02 a dollar

Month-end dollar demand from importers and possible intervention by the central bank weighed on the home currency. Photo: Pradeep Gaur/MintPremium
Month-end dollar demand from importers and possible intervention by the central bank weighed on the home currency. Photo: Pradeep Gaur/Mint

Mumbai: The Indian rupee ended unchanged on Thursday, retreating from a more than one-week high hit earlier in the session, on the back of month-end dollar demand from importers and possible intervention by the central bank.

The rupee had initially gained on sustained foreign fund inflows into the stock and debt markets and after India on Wednesday allowed foreign institutional investors to hold more government debt while reducing the portion available to long-term investors.

But that was not enough to sustain the gains given heavy dollar buying by state-run banks to meet month-end import payment demands of clients, with some traders citing potential dollar buying by the Reserve Bank of India (RBI).

Public sector banks were heavy dollar buyers, even as equity market related inflows remained healthy.

It was also closely following other Asian currencies, which weakened against the dollar.

The home currency closed at 60.11, unchanged from its previous close. In the morning trade, rupee had strengthened to 59.99 a dollar level after opening at 60.02 a dollar.

India’s benchmark equity index Sensex ended at 26271.85 points on BSE, up 0.48%.

Most of the Asian currencies ended lower. Indonesian Rupiah was down 0.53%, South Korean Won was down 0.49%, Malaysian Ringgit down 0.24%, Thai Baht down 0.21%, Philippines Peso down 0.17%, Taiwan dollar down 0.16%, Japanese Yen down 0.14%, Singapore Dollar down 0.13%.

Since the beginning of this year, the rupee has gained 2.82%, while foreign institutional investors have bought $11.91 billion during the period from local equity markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 80.775, down 0.06% from the previous close of 80.823.

The yield on India’s 10-year benchmark bond ended at 8.65%, compared with its Wednesday’s close of 8.663%. Bond yields and prices move in opposite directions.

The Reserve Bank of India (RBI) on Wednesday readjusted debt investment limits for various kinds of foreign investors, allowing medium-term investors to invest an additional $5 billion while reducing by the same quantum the limits for long-term investors in government bonds.

Swati Bhat of Reuters contributed to this story.

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Published: 24 Jul 2014, 09:33 AM IST
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