* Hopes for foreign inflows strong; share gains boost
* Dlr's broad losses versus major currencies also aids rupee
* INR seen touching 45/dlr this wk due to Coal India outflows
(Updates to close)
By Swati Bhat
MUMBAI, Oct 25 (Reuters) - The Indian rupee rose on Monday, pulling back from its biggest fall in a month-and-half in the previous session as gains in domestic shares fuelled hopes for more inflows while a weak dollar also helped sentiment.
The partially convertible rupee INR=IN closed at 44.35/36 per dollar, half a percent stronger than 44.59/60 at close on Friday when it dropped 0.65 percent, in its biggest one-day fall since early September.
"The dollar-rupee is bouncing end-to-end from sell zone of 44.55-44.65 and buy zone of 44.25-44.35," said J. Moses Harding, head of global markets at IndusInd Bank in Mumbai.
"Two factors are dominating now - general dollar weakness ahead of quantitative easing 2 and Coal India IPO outflows in the first week of November. These two forces are good enough to keep the rupee in a tight range within 44.25-44.65".
The dollar dropped broadly on Monday, hitting a 15-year low versus the yen, as a Group of 20 agreement to shun competitive currency devaluations was taken as a green light to resume dollar-selling by investors. [USD/]
The index of the dollar .DXY against six major currencies was down 0.8 percent when the rupee market closed.
"The euro was mainly being watched. Oil bids were there but there was also counter selling pressure from the currency futures market," said Abhijit Ray, a foreign exchange dealer with state-run Allahabad Bank in Mumbai.
Oil CLc1 is India's biggest import and refiners are the largest buyers of dollars in the domestic currency market with their demand tending to peak at the end of each month when they are required to make payments.
"When Coal India outflows happen, its possible for the rupee to drop to 45," Allahabad Bank's Ray said.
Coal India's $3.5 billion IPO, the country's largest, was more than 15 times subscribed last week, giving the government power to price the issue at the top of its range and building momentum for other state offers. [ID:nSGE69K0JD]
The world's largest coal miner would begin to refund excess subscriptions for the IPO, which had an institutional order book of about $27 billion powered by foreign funds, by late October or early November and most traders expect the rupee to weaken towards 45 at that time.
* Dlr's broad losses versus major currencies also aids rupee
* INR seen touching 45/dlr this wk due to Coal India outflows
(Updates to close)
By Swati Bhat
MUMBAI, Oct 25 (Reuters) - The Indian rupee rose on Monday, pulling back from its biggest fall in a month-and-half in the previous session as gains in domestic shares fuelled hopes for more inflows while a weak dollar also helped sentiment.
The partially convertible rupee INR=IN closed at 44.35/36 per dollar, half a percent stronger than 44.59/60 at close on Friday when it dropped 0.65 percent, in its biggest one-day fall since early September.
"The dollar-rupee is bouncing end-to-end from sell zone of 44.55-44.65 and buy zone of 44.25-44.35," said J. Moses Harding, head of global markets at IndusInd Bank in Mumbai.
"Two factors are dominating now - general dollar weakness ahead of quantitative easing 2 and Coal India IPO outflows in the first week of November. These two forces are good enough to keep the rupee in a tight range within 44.25-44.65".
The dollar dropped broadly on Monday, hitting a 15-year low versus the yen, as a Group of 20 agreement to shun competitive currency devaluations was taken as a green light to resume dollar-selling by investors. [USD/]
The index of the dollar .DXY against six major currencies was down 0.8 percent when the rupee market closed.
"The euro was mainly being watched. Oil bids were there but there was also counter selling pressure from the currency futures market," said Abhijit Ray, a foreign exchange dealer with state-run Allahabad Bank in Mumbai.
Oil CLc1 is India's biggest import and refiners are the largest buyers of dollars in the domestic currency market with their demand tending to peak at the end of each month when they are required to make payments.
"When Coal India outflows happen, its possible for the rupee to drop to 45," Allahabad Bank's Ray said.
Coal India's $3.5 billion IPO, the country's largest, was more than 15 times subscribed last week, giving the government power to price the issue at the top of its range and building momentum for other state offers. [ID:nSGE69K0JD]
The world's largest coal miner would begin to refund excess subscriptions for the IPO, which had an institutional order book of about $27 billion powered by foreign funds, by late October or early November and most traders expect the rupee to weaken towards 45 at that time.
