Indian rupee ends flat, but hopes high about foreign flows
The Indian rupee ended steady on Wednesday as optimism over continued foreign investments in domestic markets was offset by caution ahead of key indicators this week, including economic growth data.business Updated: Aug 28, 2014 10:06 IST
The Indian rupee ended steady on Wednesday as optimism over continued foreign investments in domestic markets was offset by caution ahead of key indicators this week, including economic growth data.
Expectations of further monetary stimulus in the euro zone have boosted emerging market assets by raising hopes of continued foreign purchases, although some of those gains are being offset by the dollar's rise against major currencies.
Foreign institutional investors have bought a net $29.79 billion in debt and shares so far this year, helping lift Indian markets. The NSE share index, which hit a string of all-time highs recently, ended at a record closing high on Wednesday.
All eyes are now on gross domestic product data for the April-June quarter due on Friday and possibly current account deficit numbers this week. Globally, investors will also pay attention to monthly U.S. employment data due on Friday.
"Markets will remain range-bound until action heats up next week on expectations about the U.S. non farm payrolls data. In the near term, 60.38 will serve as the support for the rupee," said Chintan Karnani, chief analyst at Insignia Consultants, a currency risk advisory firm in New Delhi.
The partially convertible rupee closed at 60.45/46 per dollar compared with 60.4335/4450 in the previous session. The dollar remains strong, hitting a 13-month high against a basket of major currencies.
In the offshore non-deliverable forwards, the one-month contract was at 60.74/79 , while the three-month was at 61.25/35