RTRS: Indian rupee retreats from 2-wk lows; stx rise helps
The Indian rupee snapped a two-day fall and rose on Friday boosted by gains in regional peers and a higher start to the domestic sharemarket, which could fuel more foreign capital inflows.
At 10:40 a.m. (0510 GMT), the partially convertible rupee INR=IN was at 46.45/46 per dollar, 0.6 percent stronger than its close of 46.735/745 on Thursday, when it had dropped as low as 46.82, its lowest since Oct. 7.
Dealers said there were good flows coming from offshore markets helping the rupee.
One-month offshore non-deliverable forward contracts PNDF were quoting at 46.44/54 with the spread between onshore and offshore markets having narrowed from over 20 points on Thursday to just about 2 points.
"There are no major negative factors for rupee weakness beyond 46.75-47.00. The offshore flows are good; pipe-line inflows from companies raising monies abroad are good," said J. Moses Harding, head of global markets, at IndusInd Bank.
"EUR/USD is expected to hold above 1.4950 for extension of gains into 1.51-1.52 and supply driven mode in the forward segment. All these factors would guide the rupee towards the strong support at 46.20," he wrote in a daily note.
