Indian rupee gains as stocks seen higher

The Indian rupee edged higher today on expectations the local stock market may open firm but gains may be pared following the dollar's gains against some currencies such as the yen.

The Indian rupee edged higher on Friday on expectations the local stock market may open firm but gains may be pared following the dollar's gains against some currencies such as the yen.

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At 9:08 am the partially convertible rupee was at 47.70/71 per dollar, stronger than Wednesday's close of 48.07/08 per dollar. The market was closed on Thursday for Christmas.

The rupee has gained 4.2 percent this month, helped partly by foreign portfolio inflows of $395 million in December, but is down 18 percent in 2008 on equity withdrawals of more than $13 billion.

The yen dipped against the dollar and the euro on Friday after data showed Japan's price gains are slowing rapidly, underscoring fears the world's second largest economy could sink back into deflation next year.