Rupee ends off 3-1/2 month high

The rupee fell on Monday,retreating from a three-and-a-half-month high touched earlier in the session, hit by a fall in domestic shares although inflows from an upcoming government stake sale could support the local currency this week.

The partially convertible rupee closed at 53.285/295 per dollar versus its previous close of 53.19/20.

It rose as high as 52.91 earlier in the session, its highest level since October 18, for which dealers cited about $250 million of inflows from a state-run power finance firm as aiding it.
However, falling domestic shares sent the rupee lower.

The chief executive at treasury risk management advisory Forexserve,Satyajit Kanjilal, said: “The rupee move to below 53 today is indicating that the panic related to the current account deficit is subsiding. This typically puts the buyers at ease and adds pressure on sellers.”

The government is looking to raise about $2 billion through a stake sale in NTPC Ltd, with dealers expecting foreign fund inflows between $300 million and $500 million.

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