RTRS: Indian rupee gains but sheds 0.3 pct in January
India's rupee rose in late trade on Friday as foreign banks unwound long dollar positions and shares staged a rally, but the unit closed the month 0.3 percent weaker after shedding nearly a fifth of its value last year.
Gains in stocks eased concerns of rising outflows, helping the partially convertible rupee close at 48.87/88 per dollar, 0.2 percent stronger than its previous close of 48.975/985.
"The rupee rose in late trade due to unwinding of long dollar positions by foreign banks ahead of the weekend," said L. Subramanian, chief dealer with ICICI Bank.
India's main stock index shrugged off a shaky start and rallied 2 percent on Friday, to post its first weekly rise in four, as domestic funds bought into blue chips. [.BO].
Foreigners pulled about $1 billion from Indian shares in January after selling more than $13 billion in 2008.
"The rupee will continue to track the G7 currencies and the global equity markets. The dollar index is bullish, so the rupee might depreciate further or otherwise 48.60 to 49.25 band should hold for some time," Subramanian said.
