Indian rupee erases gains

Friday June 26, 2009

MUMBAI: The Indian rupee ended slightly weaker on Thursday, surrendering early gains as the stock market turned negative and as importers bought dollars to meet month-end commitments. The partially convertible rupee ended a choppy session at 48.595/605 per dollar, just below Wednesday's close of 48.56/57. From an early high of 48.46, the rupee fell as far as 48.73.

On Tuesday, it had hit 48.90, its lowest since mid-May. "The month-end demand is also picking up. But stocks remain the main trigger," a senior dealer with a foreign bank, said. The rupee has rebounded from a record low of 52.2 in early March as foreigners bought around $7.5 billion of stocks in three months as the main index rose more the 90 percent.

(Reuters)