The Indian rupee snapped a three-day rising streak to end down on Wednesday, after see-sawing through the day, tracking choppy shares, with dollar demand from oil importers and a weak euro weighing. The rupee closed at 51.90/91 to the dollar, 0.4 percent weaker than Tuesday's close of 51.70/71, after moving in a 51.53 to 51.92 band.
The rupee has risen 2.5 percent in the three sessions to Tuesday, largely buoyed by foreign funds buying into local debt, before the limits they won to buy such paper expire in mid-January.
"I do acknowledge that recent gains in the rupee is due to buying of shares and inflows by FIIs, but these are early days," said Suresh Kumar Ramanathan, regional rates and foreign exchange strategist for CIMB Investment Bank in Kuala Lumpur. One-month offshore non-deliverable forward contracts were quoted at 52.27, indicating some weakness in the short-term in the onshore spot rate. In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all around 52.13 on total volume of $5.2 billion.
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